Portfolio Recovery Associates To Buy Norway-based Aktiv Kapital For $880 Mln

(RTTNews) - Portfolio Recovery Associates Inc. (PRAA) has agreed to buy Norway-based Aktiv Kapital AS for $880 million.

Aktiv Kapital is a company specializing in the acquisition and servicing of non-performing consumer loans throughout Europe and in Canada

PRA agreed to acquire the equity interest in Aktiv Kapital for about $880 million, while also agreeing to assume about $435 million of its corporate debt, resulting in an acquisition of estimated total enterprise value of $1.3 billion.

PRA is expected to finance this transaction with a combination of cash; $170 million of seller financing; $435 million from PRA's domestic, revolving credit facility; and by accessing an accordion feature on its credit facility of up to $214 million.

The company expects to close the deal in second quarter, subject to certain customary and regulatory closing conditions.