Atlanticus Closes $60 Million Principal Amount of 9.25% Senior Notes Due 2029 in Add-On Offering
Atlanticus Holdings (NASDAQ: ATLC) has successfully closed a $60 million add-on offering of 9.25% Senior Notes due 2029. The offering, which included a $5 million exercise of the underwriters' option, resulted in net proceeds of approximately $56.5 million after deducting underwriting costs. These Additional Notes will trade under the symbol 'ATLCZ' on Nasdaq and are expected to be fungible with the previously issued $57,250,000 Existing Notes.
The company plans to use the proceeds to redeem a portion of Class B preferred units issued by a subsidiary and/or for general corporate purposes. The offering was made through an effective shelf registration statement and was managed by B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets, and William Blair & Company as book-running managers.
Atlanticus Holdings (NASDAQ: ATLC) ha chiuso con successo un'offerta supplementare di 60 milioni di dollari di Note Senior al 9,25% con scadenza nel 2029. L'offerta, che ha incluso l'esercizio dell'opzione dei sottoscrittori per 5 milioni di dollari, ha originato proventi netti di circa 56,5 milioni di dollari dopo la deduzione dei costi di sottoscrizione. Queste Note Aggiuntive saranno negoziate con il simbolo 'ATLCZ' su Nasdaq e dovrebbero essere fungibili con le Note Esistenti già emesse per un totale di 57.250.000 dollari.
L'azienda prevede di utilizzare i proventi per il riscatto di una parte delle unità privilegiate di Classe B emesse da una controllata e/o per scopi aziendali generali. L'offerta è stata effettuata tramite una dichiarazione di registrazione a scaffale efficace ed è stata gestita da B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets e William Blair & Company in qualità di gestori della raccolta.
Atlanticus Holdings (NASDAQ: ATLC) ha cerrado con éxito una oferta adicional de 60 millones de dólares de Notas Senior al 9,25% con vencimiento en 2029. La oferta, que incluyó un ejercicio de opción de los suscriptores por 5 millones de dólares, resultó en un ingreso neto de aproximadamente 56,5 millones de dólares después de deducir los costos de suscripción. Estas Notas Adicionales se negociarán bajo el símbolo 'ATLCZ' en Nasdaq y se espera que sean fungibles con las Notas Existentes previamente emitidas por un total de 57.250.000 dólares.
La empresa planea utilizar los ingresos para redimir una parte de las unidades preferentes de Clase B emitidas por una subsidiaria y/o para fines corporativos generales. La oferta se realizó a través de una declaración de registro en estante efectiva y fue gestionada por B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets y William Blair & Company como gerentes de libro.
Atlanticus Holdings (NASDAQ: ATLC)는 2029년 만기 9.25% 선순위 채권 추가 제공을 위해 6천만 달러 규모의 자금을 성공적으로 유치했습니다. 이번 제공에는 인수자의 옵션 행사로 500만 달러가 포함되어 있으며, 인수 비용 공제 후 약 5천650만 달러의 순수익이 발생했습니다. 이 추가 채권은 나스닥에서 'ATLCZ' 기호로 거래될 예정이며, 이전에 발행된 57,250,000 달러 규모의 기존 채권과 양도 가능할 것으로 예상됩니다.
회사는 자금을 자회사에서 발행한 클래스 B 우선주 일부를 상환하거나 일반 기업 용도로 사용할 계획입니다. 이번 제공은 유효한 선반 등록 명세서를 통해 이루어졌으며, B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets, William Blair & Company가 북런닝 매니저로 관리했습니다.
Atlanticus Holdings (NASDAQ: ATLC) a réussi à conclure une offre additionnelle de 60 millions de dollars d'Obligations Senior à 9,25% arrivant à échéance en 2029. L'offre, qui comprenait un exercice de l'option des souscripteurs de 5 millions de dollars, a généré des produits nets d'environ 56,5 millions de dollars après déduction des coûts d'émission. Ces Obligations Additionnelles seront négociées sous le symbole 'ATLCZ' sur le Nasdaq et devraient être fongibles avec les Obligations Existantes précédemment émises pour un total de 57,250,000 dollars.
L'entreprise prévoit d'utiliser les produits pour racheter une partie des unités de catégorie B privilégiées émises par une filiale et/ou pour des besoins d'entreprise généraux. L'offre a été réalisée par le biais d'une déclaration d'enregistrement en continu efficace et a été gérée par B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets et William Blair & Company en tant que gestionnaires de livres.
Atlanticus Holdings (NASDAQ: ATLC) hat erfolgreich ein zusätzliches Angebot über 60 Millionen US-Dollar an 9,25% Senior Notes mit Fälligkeit 2029 abgeschlossen. Das Angebot, das eine Ausübung der Anleihe-Emittentenoption über 5 Millionen US-Dollar umfasste, führte nach Abzug der Emissionskosten zu einem Nettoertrag von ca. 56,5 Millionen US-Dollar. Diese zusätzlichen Notes werden unter dem Symbol 'ATLCZ' an der Nasdaq gehandelt und sollen mit den zuvor ausgegebenen 57.250.000 US-Dollar bestehenden Notes fungibel sein.
Das Unternehmen plant, die Erlöse teilweise für die Rückzahlung von Klasse B Vorzugsaktien, die von einer Tochtergesellschaft ausgegeben wurden, und/oder für allgemeine Unternehmenszwecke zu verwenden. Das Angebot erfolgte über eine gültige Shelf-Registrierungsanmeldung und wurde von B. Riley Securities, Janney Montgomery Scott, Lucid Capital Markets und William Blair & Company als Buchführungsmanager geleitet.
- Successful closing of $60 million add-on offering of 9.25% Senior Notes
- Net proceeds of approximately $56.5 million after deducting underwriting costs
- Additional Notes expected to be fungible with Existing Notes for U.S. federal income tax purposes
- Potential redemption of Class B preferred units, which could improve capital structure
- Increased debt load with the issuance of $60 million in Additional Notes
- Higher interest expenses due to 9.25% interest rate on the new notes
Atlanticus Holdings 's successful closure of a
The key points to consider are:
- The offering's net proceeds of approximately
$56.5 million provide a substantial cash injection for the company. - The
9.25% interest rate, while relatively high, reflects the current market conditions and the company's risk profile. - The intended use of proceeds to redeem Class B preferred units issued by a subsidiary could potentially simplify the company's capital structure and reduce overall financing costs.
- The additional notes' fungibility with existing notes for tax purposes and interchangeable trading on Nasdaq (ATLCZ) should enhance liquidity for investors.
From an investor's perspective, this offering presents both opportunities and risks. The high yield may be attractive in the current low-interest-rate environment, but it also indicates a higher level of risk associated with the company. The successful completion of the offering, including the exercise of the underwriters' option, suggests strong market demand for Atlanticus' debt, which is a positive signal.
However, investors should closely monitor how effectively Atlanticus utilizes this capital to drive growth and improve its financial position. The company's ability to generate returns that exceed the
Atlanticus' successful
- Investor Appetite for Yield: In a low-interest-rate environment, the
9.25% yield is attractive to investors seeking higher returns, even with increased risk. - Growth in Inclusive Financial Services: Atlanticus' focus on enabling partners to offer more inclusive financial services aligns with the growing trend of financial inclusion, which is gaining traction among investors.
- Market Confidence in Fintech: The oversubscription of the offering (including the
$5 million underwriters' option) suggests continued investor confidence in the fintech sector, despite recent market volatility.
For retail investors, this offering presents an opportunity to gain exposure to the growing fintech sector through a fixed-income instrument. However, it's important to understand the risks associated with high-yield corporate bonds, especially in a potentially rising interest rate environment.
The involvement of multiple underwriters, including well-known firms like B. Riley Securities and William Blair & Company, adds credibility to the offering. This could potentially attract a broader investor base and improve liquidity for the notes in the secondary market.
Looking ahead, investors should monitor how this capital raise impacts Atlanticus' competitive position in the fintech landscape and its ability to capitalize on the growing demand for inclusive financial services.
ATLANTA, July 26, 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 the closing of its previously-announced underwritten registered public add-on offering of its
The Offering resulted in net proceeds of approximately
The Additional Notes constitute a further issuance of the Company’s
The Company expects to use the net proceeds of this 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.”
B. Riley Securities, Inc., Janney Montgomery Scott LLC, Lucid Capital Markets, LLC, and William Blair & Company, L.L.C. acted as book-running managers for the Offering. A.G.P./Alliance Global Partners and Clear Street LLC acted as co-managers for the Offering.
Troutman Pepper Hamilton Sanders LLP acted as legal counsel to the Company. Duane Morris LLP acted as legal counsel to the underwriters.
The Offering of these Additional Notes was 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 Offering was 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 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
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