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.
The preliminary prospectus can be read here.
EarlyBird was on top of this and posits yield talk in the 6.25% area.
What am I missing about this company that a solid financial statement is not revealing. Could have been a millionaire on a $50K common stock investment with this. So why hesitate on the preferred? Any thoughts?
I got confused with a diff ticker. Edited. I own the preferred. About all I can say. They make money.
Ah, Thanks for that. I had been trying to figure out what the appeal could be of a lending company that reserves for 10% losses on their portfolio. Bitcoin. Say no more.
Oh, saw you retracted the Bitcoin thing. I’m back to wondering…
Is this a BNPL – buy now pay later – company?
Suspect there will be a fair amount of interest on this since it is term limited (BB- 2026).