Atlanticus Closes Option in connection with Offering of Senior Notes

Rhea-AI Summary

Atlanticus Holdings Corporation (ATLC) closes underwriters' option for 9.25% Senior Notes due 2029, raising $7.0 million in net proceeds. Notes listed on Nasdaq Global Select Market under symbol 'ATLCZ'.

Insights

Financial Analyst

Atlanticus Holdings Corporation's recent completion of the underwriters' option for its 9.25% Senior Notes due 2029 has concrete implications for the company's capital structure. The additional issuance of 290,000 Notes, resulting in approximately $7.0 million in net proceeds, indicates a strategic move to enhance liquidity. This influx of capital may be allocated towards growth initiatives, debt refinancing, or improving operational capabilities. Investors should monitor how this capital is deployed, as it could influence the company's financial leverage and interest coverage ratios—key indicators of financial health and risk.

Furthermore, the involvement of established financial institutions as book-running managers and legal counsel signals a credible and well-structured offering. The listing of the Notes on the Nasdaq Global Select Market under the symbol 'ATLCZ' provides investors with an accessible avenue for investment, potentially increasing the visibility and tradability of Atlanticus's debt securities. This could have implications for the company's cost of capital and investor relations.

Legal Expert

The legal aspects surrounding the offering of Senior Notes by Atlanticus Holdings Corporation are pivotal in ensuring compliance with regulatory standards. The use of an effective shelf registration statement on Form S-3, initially filed with the SEC in 2021, demonstrates the company's foresight in capital raising activities. It allows for a streamlined process to issue securities over a period of time without the need for repeated registrations. Investors should note that this method provides Atlanticus with flexibility to respond to market conditions and financing needs efficiently.

It's also important to acknowledge the role of legal counsel in these transactions. The presence of reputable law firms such as Troutman Pepper Hamilton Sanders LLP and Duane Morris LLP mitigates legal risks and ensures adherence to securities laws. This reduces the potential for regulatory setbacks that could impact investor confidence and the company's reputation in the market.

Market Research Analyst

From a market perspective, the successful closing of the underwriters' option for Atlanticus Holdings Corporation's Senior Notes offering could be indicative of positive market sentiment towards the company. The fixed interest rate of 9.25% for these notes is particularly noteworthy, as it reflects the current interest rate environment and investor appetite for such financial instruments. In comparison to industry benchmarks, this rate may suggest a premium that balances the risk-return profile for potential investors.

Additionally, the choice of co-managers and book-runners, which includes a mix of prominent and specialized financial firms, may have been a strategic decision to target a diverse investor base. The distribution strategy and the market's reception of the offering could provide insights into the perceived creditworthiness and growth prospects of Atlanticus. This, in turn, could influence the company's future access to capital markets and its strategic positioning within the financial technology sector.

ATLANTA, Feb. 14, 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 the underwriters’ option in connection with its underwritten registered public offering (the “Offering”) of 9.25% Senior Notes due 2029 (the “Notes”). Atlanticus issued an additional 290,000 Notes and received additional net proceeds of approximately $7.0 million after deducting underwriting discounts and commissions, but before deducting expenses and the structuring fee.

The Notes are listed on the Nasdaq Global Select Market under the symbol “ATLCZ.”

B. Riley Securities, Inc., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., William Blair & Co., L.L.C., and BTIG, LLC acted as book-running managers for the Offering. Brownstone Investment Group, LLC acted as co-manager 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 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 6, 2021 and declared effective by the SEC on May 13, 2021. 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 18 million customers and $38 billion in consumer loans over our more than 25 year operating history to support lenders that originate a range of consumer loan products. These products include retail and healthcare private label credit and general purpose credit cards marketed through our omnichannel platform, including retail point-of-sale, healthcare-point of-care, direct mail solicitation, internet-based marketing, and partnerships with third parties. Additionally, through our CAR subsidiary, Atlanticus serves the individual needs of automotive dealers and automotive non-prime financial organizations with multiple financing and service programs.

Contact:
Investor Relations
(770) 828-2000
investors@atlanticus.com

        

FAQ

What offering did Atlanticus Holdings Corporation (ATLC) recently close?

Atlanticus Holdings Corporation closed the underwriters' option in connection with its underwritten registered public offering of 9.25% Senior Notes due 2029.

How much did Atlanticus Holdings Corporation (ATLC) raise in net proceeds?

Atlanticus Holdings Corporation raised approximately $7.0 million in net proceeds after deducting underwriting discounts and commissions.

Where are the Notes of Atlanticus Holdings Corporation (ATLC) listed?

The Notes of Atlanticus Holdings Corporation are listed on the Nasdaq Global Select Market under the symbol 'ATLCZ'.

Who were the book-running managers for Atlanticus Holdings Corporation's (ATLC) Offering?

B. Riley Securities, Inc., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., William Blair & Co., L.L.C., and BTIG, LLC acted as book-running managers for the Offering.

Which legal counsel represented Atlanticus Holdings Corporation (ATLC) in the Offering?

Troutman Pepper Hamilton Sanders LLP acted as legal counsel to Atlanticus Holdings Corporation, while Duane Morris LLP acted as legal counsel to the underwriters.