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).

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