Atlanticus Announces Add-On Offering of 9.25% Senior Notes Due 2029
Atlanticus Holdings (NASDAQ: ATLC) has announced an underwritten registered public add-on offering of its 9.25% Senior Notes due 2029. This offering will be an addition to the existing $57,250,000 aggregate principal amount of notes previously issued. The company plans to use the net proceeds to redeem a portion of Class B preferred units issued by a subsidiary and/or for general corporate purposes.
The Additional Notes are expected to be fungible with the Existing Notes for U.S. federal income tax purposes and will trade on Nasdaq under the symbol 'ATLCZ'. Atlanticus and this issuance received an 'A' rating from Egan-Jones Ratings Company. The offering is being made through a shelf registration statement and will be managed by B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets, and William Blair & Company as book-running managers.
Atlanticus Holdings (NASDAQ: ATLC) ha annunciato un'offerta pubblica di add-on registrata sotto sottoscrizione dei suoi Note Senior al 9,25% con scadenza nel 2029. Questa offerta sarà un'aggiunta all'importo principale aggregato di 57.250.000 dollari di note precedentemente emesse. L'azienda prevede di utilizzare i proventi netti per riscattare una parte delle unità di classe B preferenziali emesse da una sussidiaria e/o per scopi aziendali generali.
Le Note Aggiuntive dovrebbero essere fungibili con le Note Esistenti ai fini dell'imposta sul reddito federale degli Stati Uniti e verranno scambiate su Nasdaq con il simbolo 'ATLCZ'. Atlanticus e questa emissione hanno ricevuto un rating 'A' dalla Egan-Jones Ratings Company. L'offerta è realizzata attraverso una dichiarazione di registrazione di scaffale e sarà gestita da B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets e William Blair & Company come manager principali.
Atlanticus Holdings (NASDAQ: ATLC) ha anunciado una oferta pública adicional registrada bajo suscripción de sus Notas Senior al 9.25% con vencimiento en 2029. Esta oferta será una adición al monto principal agregado de 57,250,000 dólares de notas previamente emitidas. La compañía planea utilizar los ingresos netos para redimir una parte de las unidades preferentes de Clase B emitidas por una subsidiaria y/o para fines corporativos generales.
Se espera que las Notas Adicionales sean fungibles con las Notas Existentes a efectos del impuesto federal sobre la renta de EE. UU. y se negociarán en Nasdaq bajo el símbolo 'ATLCZ'. Atlanticus y esta emisión recibieron una calificación 'A' de Egan-Jones Ratings Company. La oferta se realiza a través de una declaración de registro de estante y será gestionada por B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets y William Blair & Company como gerentes principales.
Atlanticus Holdings (NASDAQ: ATLC)는 2029년 만기 9.25% 선도채권의 공모 추가 발행을 발표했습니다. 이 발행은 이전에 발행된 57,250,000 달러의 채권 총액에 추가될 것입니다. 회사는 순자금을 사용하여 자회사에서 발행한 B급 우선주 일부를 상환하고/또는 일반 기업 목적에 사용할 계획입니다.
추가 채권은 미국 연방 소득세 목적상 기존 채권과 동일하게 거래될 수 있을 것으로 예상되며, Nasdaq에서 'ATLCZ' 기호로 거래될 것입니다. Atlanticus와 이번 발행은 Egan-Jones Ratings Company로부터 'A' 등급을 받았습니다. 이 제안은 선반 등록 성명을 통해 이루어지며, B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets, William Blair & Company가 북리딩 관리자 역할을 할 것입니다.
Atlanticus Holdings (NASDAQ: ATLC) a annoncé une offre publique d'ajout enregistrée sous souscription de ses Obligations Senior à 9,25% échéant en 2029. Cette offre viendra s'ajouter au montant principal total de 57 250 000 dollars d'obligations précédemment émises. La société prévoit d'utiliser le produit net pour racheter une partie des unités privilégiées de classe B émises par une filiale et/ou à des fins générales d'entreprise.
Les Obligations Supplémentaires devraient être fongibles avec les Obligations Existantes à des fins d'impôt fédéral sur le revenu aux États-Unis et seront négociées sur le Nasdaq sous le symbole 'ATLCZ'. Atlanticus et cette émission ont reçu une note 'A' de la Egan-Jones Ratings Company. L'offre est réalisée par l'intermédiaire d'une déclaration d'enregistrement de plateau et sera gérée par B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets et William Blair & Company en tant que gestionnaires principaux.
Atlanticus Holdings (NASDAQ: ATLC) hat eine unterzeichnete registrierte öffentliche Nachfolgebemittlung ihrer 9,25% Senior Notes mit Fälligkeit 2029 angekündigt. Diese Emission wird eine Ergänzung zu dem zuvor ausgegebenen aggregierten Hauptbetrag von 57.250.000 USD an Anleihen sein. Das Unternehmen plant, die Nettoeinnahmen für die Rückzahlung eines Teils der Klasse B Vorzugsanteile, die von einer Tochtergesellschaft ausgegeben wurden, und/oder für allgemeine Unternehmenszwecke zu verwenden.
Es wird erwartet, dass die zusätzlichen Anleihen für US-amerikanische Bundessteu-Zwecke mit den bestehenden Anleihen fungibel sind und unter dem Symbol 'ATLCZ' an der Nasdaq gehandelt werden. Atlanticus und diese Emission erhielten eine 'A'-Bewertung von der Egan-Jones Ratings Company. Diese Angebot erfolgt über eine Registierungserklärung für Regalfond und wird von B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets und William Blair & Company als Hauptbuchführer verwaltet.
- Received an 'A' rating from Egan-Jones Ratings Company for the issuance
- Additional Notes expected to be fungible with Existing Notes, potentially increasing liquidity
- Proceeds to be used for redeeming Class B preferred units, potentially improving capital structure
- Increased debt load with the issuance of Additional Notes
- Potential dilution of existing noteholders' interests
Atlanticus Holdings Corporation's announcement of an add-on offering of 9.25% Senior Notes due 2029 is significant news for investors. This type of financial instrument appeals to yield-seeking investors due to its relatively high interest rate. The Company's decision to further issue these notes, previously rated 'A' by Egan-Jones, indicates strong confidence in their creditworthiness. The proceeds are intended to redeem a portion of the Class B preferred units or for general corporate purposes, which can provide additional liquidity and flexibility in their financial planning.
The high yield suggests the Company is leveraging favorable credit terms to manage its capital structure effectively. This move can be positive for the Company if it successfully uses these proceeds to reduce higher-cost debt or invest in growth opportunities. However, investors should be cautious about the potential increase in leverage and its implications on long-term financial stability.
From a market perspective, the add-on offering of senior notes by Atlanticus is noteworthy. The issuance under the same CUSIP as the existing notes means that it will trade interchangeably, which can provide liquidity benefits to investors. The 'A' rating by Egan-Jones further bolsters market confidence, as it indicates a low risk of default.
Additionally, the involvement of established book-running managers like B. Riley Securities and William Blair & Company suggests strong institutional backing. The use of proceeds for redeeming preferred units could be seen as a strategic move to optimize the capital structure, potentially enhancing shareholder value.
Investors should monitor the market’s reaction to this offering and the subsequent trading performance of the notes. This could serve as a barometer for the Company’s overall financial health and investor confidence.
The legal framework surrounding Atlanticus' add-on offering is robust, given that it follows the guidelines of a shelf registration statement on Form S-3, previously declared effective by the SEC. This type of registration allows the Company to issue multiple securities over time, providing flexibility in capital raising activities.
The involvement of multiple underwriting firms ensures compliance with securities laws and provides a layer of due diligence, safeguarding investor interests. Additionally, the explicit mention that this press release does not constitute an offer to sell serves as a legal precaution, ensuring regulatory adherence.
Prospective investors should review the prospectus and supplement for detailed information on terms and risks. This legal diligence is important to understanding the full implications and ensuring informed decision-making.
ATLANTA, July 23, 2024 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation (NASDAQ: ATLC) (“Atlanticus,” “the Company”, “we,” “our” or “us”), a financial technology company that enables its bank, retail and healthcare partners to offer more inclusive financial services to millions of everyday Americans, today announced it has commenced an underwritten registered public add-on offering (the “Add-On Offering”) of its
The Additional Notes constitute a further issuance of the Company’s
The Company expects to use the net proceeds of this Add-On Offering to redeem a portion of the Class B preferred units issued by one of the Company’s subsidiaries and/or for general corporate purposes.
The Existing Notes trade and the Additional Notes are expected to trade on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “ATLCZ.”
The Company and this issuance of Additional Notes received an “A” rating from Egan-Jones Ratings Company, an independent, unaffiliated rating agency. Ratings are not a recommendation to purchase, hold or sell Additional Notes, inasmuch as the ratings do not comment as to market price or suitability for a particular investor. The ratings are based upon current information furnished to the rating agency by the Company and information obtained by the rating agency from other sources. The ratings are only accurate as of the date thereof and may be changed, superseded or withdrawn as a result of changes in, or unavailability of, such information, and therefore a prospective purchaser should check the current ratings before purchasing the Additional Notes. Each rating should be evaluated independently of any other rating.
B. Riley Securities, Inc., Janney Montgomery Scott LLC, Lucid Capital Markets, LLC, and William Blair & Company, L.L.C. are acting as book-running managers for this Add-On Offering. A.G.P./Alliance Global Partners and Clear Street LLC are acting as co-managers for this Add-On Offering.
The Add-On Offering of these Additional Notes is being made pursuant to an effective shelf registration statement on Form S-3, which was initially filed with the Securities and Exchange Commission (the “SEC”) on May 10, 2024 and declared effective by the SEC on May 21, 2024. The Add-On Offering will be made only by means of a prospectus and prospectus supplement. A copy of the prospectus and prospectus supplement relating to these securities may be obtained, when available, from the website of the SEC at http://www.sec.gov or by contacting: B. Riley Securities, Inc., 1300 17th Street North, Suite 1300, Arlington, Virginia 22209, Attn: Prospectus Department, Email: prospectuses@brileyfin.com, Telephone: (703) 312-9580.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Atlanticus Holdings Corporation
Empowering Better Financial Outcomes for Everyday Americans
Atlanticus’ technology allows bank, retail, and healthcare partners to offer more inclusive financial services to everyday Americans through the use of proprietary analytics. We apply the experience gained and infrastructure built from servicing over 20 million customers and
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You generally can identify these statements by the use of words such as “outlook,” “potential,” “continue,” “may,” “seek,” “approximately,” “predict,” “believe,” “expect,” “plan,” “intend,” “estimate” or “anticipate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. These risks and uncertainties include those risks described in the Company’s filings with the Securities and Exchange Commission and include, but are not limited to, risks related to the uncertain economic environment, particularly the impact of inflation, interest rates, labor availability and supply chains; the Company’s ability to retain existing, and attract new, merchant partners and funding sources; increases in loan delinquencies; its ability to operate successfully in a highly regulated industry; the outcome of litigation and regulatory matters; the effect of management changes; cyberattacks and security vulnerabilities in its products and services; and the Company’s ability to compete successfully in highly competitive markets. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.
Contact:
Investor Relations
(770) 828-2000
investors@atlanticus.com
FAQ
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