ATLANTA - Atlanticus Holdings Corporation (NASDAQ: ATLC), a fintech company facilitating inclusive financial services, has priced its public add-on offering of $55 million in senior notes, with an anticipated closing date of July 26, 2024. The 9.25% Senior Notes, due 2029, are priced at $24.70 each. Additionally, underwriters have an option to purchase up to $8.25 million more in notes.
These additional notes are part of a larger issuance, adding to the $57.25 million in senior notes previously released. They will share the same CUSIP number and be interchangeable with the existing notes on the Nasdaq Global Select Market under the ticker ATLCZ. The offering, rated 'A' by Egan-Jones Ratings Company, is expected to be tax-fungible with existing notes.
Atlanticus intends to use the net proceeds for redeeming part of the Class B preferred units of a subsidiary or for general corporate purposes. The offering stems from a shelf registration statement filed on May 10, 2024, and declared effective on May 21, 2024.
Book-running managers for the offering include B. Riley Securities, Inc., Janney Montgomery Scott LLC, Lucid (NASDAQ:LCID) Capital Markets, LLC, and William Blair & Company, L.L.C., with A.G.P./Alliance Global Partners (NYSE:GLP) and Clear Street LLC as co-managers.
Atlanticus Holdings has a history of over 25 years in the consumer loan space, managing over $40 billion in loans. The company's technology supports a variety of loan products, including credit cards and financing programs for the automotive sector through its CAR subsidiary.
This news is based on a press release statement.
In other recent news, Atlanticus Holdings Corp. has been making waves in the consumer finance sector.
The company's first-quarter earnings for 2024 were in line with expectations, though net income fell slightly short of estimates, landing at $19.9 million. Despite this, Atlanticus has been proactive in offsetting the impact of new late fee rules introduced by the Consumer Financial Protection Bureau (CFPB), implementing additional fees and new product features. These measures are projected to fully mitigate the new rules' effects by mid-2025.
BTIG has initiated coverage on Atlanticus, assigning the company's stock a Buy rating with a price target of $45. The firm cites favorable macro trends in consumer finance as a key driver for Atlanticus's future growth. With prime lenders tightening their underwriting standards, BTIG expects Atlanticus to gain market share by offering alternative lending solutions to near-prime consumers.
In addition, Atlanticus's investment in technology, specifically merchant integration and user-friendly consumer interfaces, is expected to enhance the appeal of its financing offers. Despite regulatory challenges from the CFPB, Atlanticus has maintained its "Market Outperform" rating from JMP Securities, reflecting its strategic resilience.
As prime lenders adjust their standards, analysts anticipate Atlanticus to seize growth opportunities, with a positive outlook for its asset growth and market share gains.
InvestingPro Insights
As Atlanticus Holdings Corporation (NASDAQ: ATLC) gears up for its anticipated closing date for the public add-on offering of senior notes, investors are closely monitoring the company's financial metrics and market performance. Based on real-time data from InvestingPro, Atlanticus presents a compelling picture in certain areas.
The company's market capitalization stands at a solid $512.25 million, and it is trading at a relatively low earnings multiple with a P/E ratio of 6.56. This could indicate that the stock is potentially undervalued relative to its earnings, a point of interest for value investors. Additionally, Atlanticus has demonstrated considerable price strength with a 32.58% return over the last month and a 32.68% return over the last three months, reflecting robust short-term performance that may catch the eye of momentum investors.
From a liquidity perspective, an InvestingPro Tip points out that Atlanticus's liquid assets exceed its short-term obligations, suggesting a healthy financial position for managing its current liabilities. This is particularly relevant as the company contemplates using the proceeds from the senior notes offering for redeeming part of the Class B preferred units of a subsidiary or for general corporate purposes.
Investors seeking further analysis and detailed insights into Atlanticus Holdings Corporation can find additional InvestingPro Tips, with 10 more available at https://www.investing.com/pro/ATLC. These tips could provide valuable context for understanding the company's financial health and market position. To deepen their investment research, users can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription on InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.