Atlanticus Holdings Corporation Prices $70 Million Offering of Series B Cumulative Perpetual Preferred Stock

Rhea-AI Summary

Atlanticus Holdings Corporation (NASDAQ: ATLC) announced a public offering of 2,800,000 shares of 7.625% Series B Cumulative Perpetual Preferred Stock at $25.00 per share, aiming to raise $70 million before expenses. The offering will close around June 11, 2021, with underwriters granted a 30-day option for an additional 420,000 shares. Proceeds will support general corporate purposes, including stock repurchases. The preferred stock is expected to trade under the symbol 'ATLCP' on NASDAQ shortly after the closing.

Positive

• The offering of 2,800,000 shares of preferred stock aims to raise significant capital of $70 million.
• The underwriters' option to purchase an additional 420,000 shares indicates confidence in the offering.
• Net proceeds will be used for general corporate purposes, including potential stock repurchases, which may benefit shareholders.

Negative

• The offering may lead to shareholder dilution if additional shares are sold as planned.

ATLANTA, June 09, 2021 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation (NASDAQ: ATLC) (“Atlanticus” or the “Company”) today announced the pricing of its underwritten registered public offering of 2,800,000 shares of 7.625% Series B Cumulative Perpetual Preferred Stock, no par value and liquidation preference of $25.00 per share (the “Preferred Stock”) at an initial public offering price of $25.00 per share, raising gross proceeds of $70 million before deducting underwriting discounts, the structuring fee and other estimated offering expenses.

In connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 420,000 shares of Preferred Stock. The offering is expected to close on or about June 11, 2021, subject to customary closing conditions.

The Company’s shares of Preferred Stock are expected to begin trading on NASDAQ under the symbol “ATLCP” within 30 days of the closing date of this offering, if approved.

Net proceeds of this offering will be used for general corporate purposes, including repurchases of common stock.

B. Riley Securities, Inc., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc. and William Blair & Company are acting as book-running managers for this offering. Kingswood Capital Markets, division of Benchmark Investments, LLC, is acting as the lead manager for the offering. Aegis Capital Corp. and Maxim Group LLC are acting as co-managers for this offering. The offering of these securities 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 6, 2021 and declared effective by the SEC on May 13, 2021.  The 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

Founded in 1996, our business utilizes proprietary analytics and a flexible technology platform to enable financial institutions to provide various credit and related financial services and products to everyday Americans. We apply the experience gained and infrastructure built from servicing over 18 million customers and $26 billion in consumer loans over our 24-year operating history to support lenders that originate a range of consumer loan products. These products include retail and healthcare 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. 

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 extent and duration of the COVID-19 pandemic and its impact on the Company, bank partners, merchants, consumers, loan demand, the capital markets and the economy in general; the Company's ability to retain existing, and attract new, merchants and funding sources; changes in market interest rates; 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
Adam Prior
Senior Vice President
The Equity Group Inc.
(212) 836-9606
aprior@equityny.com

FAQ

What is the stock offering by Atlanticus Holdings Corporation?

Atlanticus Holdings Corporation is offering 2,800,000 shares of 7.625% Series B Cumulative Perpetual Preferred Stock at $25.00 per share.

When will the Atlanticus stock offering close?

The offering is expected to close on or about June 11, 2021.

How much capital does the Atlanticus stock offering aim to raise?

The offering aims to raise gross proceeds of $70 million.

What will the proceeds from the Atlanticus stock offering be used for?

The net proceeds will be used for general corporate purposes, including repurchases of common stock.

What is the expected trading symbol for Atlanticus's preferred stock?

The preferred stock is expected to begin trading on NASDAQ under the symbol 'ATLCP'.