Our site runs on donations to keep it running for free. Please consider donating if you enjoy your experience here!

Atlanticus Holdings to Sell Baby Bonds

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.

4 thoughts on “Atlanticus Holdings to Sell Baby Bonds”

  1. 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?

    1. I got confused with a diff ticker. Edited. I own the preferred. About all I can say. They make money.

      1. 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?

  2. Suspect there will be a fair amount of interest on this since it is term limited (BB- 2026).

Leave a Reply

Your email address will not be published. Required fields are marked *