Financial services Atlanticus Holdings Corporation (ATLC) has announced they will be selling a new issue of baby bonds.
The $25 issue of senior notes will have a maturity date in 2026.
These notes will have optional early redemption starting in 2023 and the redemption will be on a sliding scale starting at $25.50 and reducing 25 cents annually until it reaches $25 in 2025. Prior to 2023 the notes may be redeemed for $25/share plus a ‘make whole’ premium.
ATLC has a 7.625% perpetual preferred (ATLCP) outstanding which has traded relatively weak since issuance in June–now at $25/share.
EarlyBird was on top of this and posits yield talk in the 6.25% area.