Portfolio Recovery expands stock offer to 1.25 million shares, discount priced at $52.50 each

Portfolio Recovery prices stock offer at discount

NORFOLK, Va. — Debt collector Portfolio Recovery Associates Inc. said Thursday it has priced an expanded public stock offering of 1.25 million shares at $52.50 each.

Portfolio Recovery, based in Norfolk, Va., previously expected to sell 1 million shares. The price represents a 3 percent discount to the stock’s Wednesday closing price of $54.03.

The company expects to generate proceeds of about $62.2 million, after underwriting discounts, commissions and offering expenses. If underwriters exercise their 30-day option to buy up to 187,500 additional shares, net proceeds could total $71.6 million.

The company expects to use the funds to repay some of the debt on its $365 million revolving credit line. That would allow Portfolio Associates to use the credit line to buy up portfolios or make acquisitions. The company also will use proceeds for general corporate purposes such as capital spending.

William Blair & Co. LLC is acting as sole book-running manager for the offering, and JMP Securities LLC is acting as co-lead manager. The offering is expected to close Feb. 22.

Shares fell $1.01 to $53.02 in midday trading, as shareholders sold off some holdings ahead of the potential dilution of their stakes. Portfolio Recovery currently has 15.5 million shares outstanding.