Atlanticus Holdings Corporation Closes Preferred Stock Offering
June 11 2021 - 12:22PM
Atlanticus Holdings Corporation (NASDAQ: ATLC) (“Atlanticus” or the
“Company”) today announced the closing of its previously announced
underwritten registered public offering of 2,800,000 shares of its
7.625% Series B Cumulative Perpetual Preferred Stock, no par
value and liquidation preference of $25.00 per share (the
“Preferred Stock”), at an initial public offering price of $25.00
per share. The offering resulted in net proceeds of
approximately $67.2 million after deducting underwriting
discounts and commissions, but before deducting expenses and the
structuring fee. The Company expects to use the net proceeds of
this offering for general corporate purposes, including the
repurchase of common stock.
The underwriters have a 30-day option to purchase up to an
additional 420,000 shares of the Preferred Stock. Dividends on the
Preferred Stock will be paid when declared by the Company’s Board
of Directors at a fixed rate of 7.625% of the $25.00 liquidation
preference per year, equivalent to $1.90625 per share per year.
Shares of the Preferred Stock are expected to be listed on NASDAQ
under the symbol “ATLCP” and are expected to begin trading within
30 days.
B. Riley Securities, Inc., Janney Montgomery Scott LLC,
Ladenburg Thalmann & Co. Inc. and William Blair &
Company acted as book-running managers for this offering. Kingswood
Capital Markets, division of Benchmark Investments, LLC, acted as
lead manager for the offering. Aegis Capital Corp. and Maxim Group
LLC acted as co-managers for this offering.
Troutman Pepper Hamilton Sanders LLP acted as legal counsel to
the Company. Alston & Bird LLP acted as legal counsel to
the underwriters.
The offering of these securities was made pursuant to an
effective shelf registration statement on Form S-3, which was
initially filed with the Securities and Exchange
Commission (the “SEC”) on May 6, 2021, and declared
effective by the SEC on May 13, 2021. The
offering will be made only by means of a prospectus and prospectus
supplement. A copy of the prospectus and prospectus supplement
relating to these securities may be obtained from the website of
the SEC at http://www.sec.gov or by
contacting: B. Riley Securities, Inc., 1300
17th Street North, Suite 1300, Arlington,
Virginia 22209, Attn: Prospectus Department,
Email: prospectuses@brileyfin.com, Telephone: (703)
312-9580.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Atlanticus Holdings
CorporationEmpowering Better Financial Outcomes for
Everyday Americans
Founded in 1996, our business utilizes proprietary analytics and
a flexible technology platform to enable financial institutions to
provide various credit and related financial services and products
to everyday Americans. We apply the experience gained and
infrastructure built from servicing over 18 million customers
and $26 billion in consumer loans over our 24-year
operating history to support lenders that originate a range of
consumer loan products. These products include retail and
healthcare credit and general-purpose credit cards marketed through
our omnichannel platform, including retail point-of-sale,
healthcare-point of-care, direct mail solicitation, internet-based
marketing, and partnerships with third parties. Additionally,
through our CAR subsidiary, Atlanticus serves the
individual needs of automotive dealers and automotive non-prime
financial organizations with multiple financing and service
programs.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. You generally can identify these statements by the use of
words such as “outlook,” “potential,” “continue,” “may,” “seek,”
“approximately,” “predict,” “believe,” “expect,” “plan,” “intend,”
“estimate” or “anticipate” and similar expressions or the negative
versions of these words or comparable words, as well as future or
conditional verbs such as “will,” “should,” “would,” “likely” and
“could.” These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those included in the forward-looking statements. These risks
and uncertainties include those risks described in the Company's
filings with the Securities and Exchange Commission and include,
but are not limited to, risks related to the extent and duration of
the COVID-19 pandemic and its impact on the Company, bank partners,
merchants, consumers, loan demand, the capital markets and the
economy in general; the Company's ability to retain existing, and
attract new, merchants and funding sources; changes in market
interest rates; increases in loan delinquencies; its ability to
operate successfully in a highly regulated industry; the outcome of
litigation and regulatory matters; the effect of management
changes; cyberattacks and security vulnerabilities in its products
and services; and the Company's ability to compete successfully in
highly competitive markets. The forward-looking statements speak
only as of the date on which they are made, and, except to the
extent required by federal securities laws, the Company disclaims
any obligation to update any forward-looking statement to reflect
events or circumstances after the date on which the statement is
made or to reflect the occurrence of unanticipated events. In light
of these risks and uncertainties, there is no assurance that the
events or results suggested by the forward-looking statements will
in fact occur, and you should not place undue reliance on these
forward-looking statements.
Contact:Investor RelationsAdam PriorSenior Vice
PresidentThe Equity Group Inc.(212) 836-9606aprior@equityny.com
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