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Atlanticus Holdings Prices New Baby Bond Issue

Atlanticus Holdings (ATLC) has announced pricing on the previously announced baby bond issue.

The issue prices at 6.125% for 5.4 million shares (bonds) plus another 600,000 for over-allotments.

The optional redemption price is $25.50 starting 11/30/23, dropping to $25.25 on 11/30/24 and then $25 from 11/30/2025 to maturity.

The NASDAQ ticker will be ATLCL. There will be no OTC trading as this is a debt issue.

The pricing term sheet is here.

23 thoughts on “Atlanticus Holdings Prices New Baby Bond Issue”

  1. The FIDO bond desk will NOT allow purchase of ATLCL for the next couple of weeks. They deemed it to be “risky” LOL. I did happen to mention that it was available at TD Ameritrade to no avail.

    1. I just sold my ATLCL at Fidelity and TD-Ameritarde in pre-market (had mistakenly thought today was ex-divd date!)

  2. I own FCRW that just got called and pays the same. Replacing that one with this one. Just call me even steven

  3. I don’t see buying this when I can buy their preferred currently at $25.01.
    Not only does it pay 7.625 vs. 6.125, but it is not callable until 6/11/26 vs.

      1. I suppose that was obvious as well as BBs get paid before preferred. So now you have another level of safety with a reasonable yield. I own their preferred but I am also buying some BBs as well. It is nice to know if interest rates go up over the next few years and stay stable that some of my money will come back to me (hopefully) where I can buy different stuff. Basically a diversification strategy in a way.

    1. Before I bought the preferred, I looked at the common. I liked it so much, I bought the common as well. Unfortunately, I bought much, much less of the common than the preferred. I was up almost double on the common, but now up 40%. The problem with the preferred (and the common) is the common doesn’t pay a dividend.

    2. Different animals altogether as one is a senior note with a 5 year maturity while the other is a perpetual preferred… There should be a spread first for the added duration risk and second for the preferred being lower in the corporate stack… Is 150 basis the right spread??? Time will tell, but were I to tighten my belt and put on my suspenders as I normally do, I’d go for the bond…. all personal opinion though

  4. HUGE PAIN IN THE A** to buy this at FIDO. Got some at $24.98. Fido and Schwab had this CUSIP ready last week. Oh well, hopefully others can benefit from my 36 minute bond trade.

    Rant over…for now

  5. Just wondering….

    If the underwriting discount is 3.15% , does that mean that the underwriter’s cost for this issue is $24.21?

    If so, doesn’t that imply (under normal circumstances) the underwriter won’t sell shares below that price? Does this make for somewhat of a floor support for the price of an initial offering?

    1. Sometimes even underwriters make mistakes and dump it below their cost. It is better to take that loss and use the money for the next deal where hopefully they can profit. I doubt it happens very often though. Either way they want that pool of money to keep working. Keep underwriting. Having it tied up is simply not good. They want to sell it fast.

  6. TD Ameritrade is allowing buy orders this morning on ATLCL. Looks like it will open for trade today.

  7. Any idea when this begins trading? Fidelity does not recognize the symbol as of this morning.

    1. Unlike preferreds, bonds generally do not start trading right away … in the past it’s been a week or so after pricing until they trade.

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