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Atlanticus Holdings Corp (NASDAQ:ATLC), a financial services company with a market capitalization of $951 million and currently trading near its 52-week high of $64.70, announced Wednesday that it has completed a private offering of $400 million in aggregate principal amount of 9.750% Senior Notes due 2030. The company stated in a press release that the net proceeds from the offering are intended to be used to repay outstanding amounts under its recourse warehouse facilities, for general corporate purposes including potential acquisitions, and to pay fees and expenses related to the offering. The company may also use the proceeds to partially or fully repay its 6.125% Senior Notes due 2026. According to InvestingPro data, Atlanticus maintains strong liquidity with a current ratio of 14.63, indicating robust ability to meet its short-term obligations. For deeper insights into ATLC’s financial health and 13 additional ProTips, consider exploring InvestingPro’s comprehensive analysis.
The notes are governed by an indenture dated Wednesday among Atlanticus, certain domestic subsidiaries as guarantors, and U.S. Bank Trust Company, National Association as trustee. The notes bear interest at 9.750% per year, payable semi-annually in arrears on March 1 and September 1, beginning March 1, 2026. The notes are unconditionally guaranteed on a senior unsecured basis by certain of the company’s domestic subsidiaries.
According to the filing, the notes may be redeemed before September 1, 2027, at a price equal to 100% of their principal amount plus a make-whole premium and accrued interest. After that date, the notes may be redeemed at specified prices set in the indenture. Up to 40% of the aggregate principal amount of the notes may also be redeemed before September 1, 2027, using proceeds from equity offerings at a redemption price of 109.750% of the principal amount, plus accrued interest.
If Atlanticus experiences a change of control, it will be required to offer to repurchase the notes at 101% of the principal amount, plus accrued interest. The indenture includes covenants that limit the company and its restricted subsidiaries’ ability to incur additional debt, issue certain equity securities, pay dividends, create liens, make certain investments, and enter into affiliate transactions, among other restrictions. These covenants are subject to exceptions and qualifications detailed in the indenture.
The information is based on a statement from the company’s SEC filing.
In other recent news, Atlanticus Holdings Corporation announced the pricing of a $400 million offering in senior notes with a 9.75% interest rate, due in 2030. These notes will be guaranteed by certain domestic subsidiaries and are expected to be issued in August 2025, pending customary closing conditions. The company plans to use the proceeds from this offering to repay amounts outstanding under its recourse warehouse facilities, fund potential acquisitions, and possibly repay its 6.125% Senior Notes due in 2026. Additionally, the funds will cover expenses related to the offering.
In another development, JMP Securities raised its price target for Atlanticus Holdings to $78 from $75, while maintaining a Market Outperform rating. This adjustment comes in response to Atlanticus’s robust second-quarter 2025 results, which led JMP to predict a faster pace of portfolio growth for the remainder of the year and into 2026. These recent developments highlight Atlanticus’s strategic financial maneuvers and optimistic projections from analysts.
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