Atlanticus Holdings Corp Enters Material Definitive Agreement, Incurs Obligation

TL;DR

**Atlanticus just took on new debt or changed existing debt, watch for details on impact.**

AI Summary

On January 30, 2024, Atlanticus Holdings Corporation entered into a material definitive agreement and incurred a direct financial obligation. This 8-K filing indicates the company is taking on new debt or modifying existing debt, which could impact its financial leverage and future interest expenses. Investors should monitor the details of this agreement, as increased debt could affect the company's profitability and its ability to return value to shareholders.

Why It Matters

This filing signals a new financial obligation for Atlanticus Holdings, which could alter its debt profile and potentially impact its financial health and future earnings.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation without specific details on the amount or terms, creating uncertainty about its potential impact on the company's financial health.

Analyst Insight

Investors should await further details on the nature and terms of the 'Material Definitive Agreement' and 'Direct Financial Obligation' to assess the potential impact on Atlanticus Holdings Corporation's financial health and future performance.

Key Players & Entities

• Atlanticus Holdings Corporation (company) — the registrant filing the 8-K
• January 30, 2024 (date) — date of the earliest event reported
• 000-53717 (other) — Commission File Number for Atlanticus Holdings Corporation
• 770-828-2000 (other) — Registrant's telephone number

Forward-Looking Statements

• Atlanticus Holdings Corp will provide more specific details about the material definitive agreement and financial obligation in its next quarterly or annual report. (Atlanticus Holdings Corp) — high confidence, target: Q1 2024 Earnings Report

FAQ

Key Financial Figures

• $100,000,000 — of up to an aggregate offering price of $100,000,000 of the Company's (i) 7.625% Series B Cu
• $25.00 — per share and liquidation preference of $25.00 per share (the "Preferred Stock"), and

Filing Documents

• atlc20240201_8k.htm (8-K) — 33KB
• ex_621861.htm (EX-4.1) — 183KB
• atlanticuscur.jpg (GRAPHIC) — 12KB
• 0001437749-24-002991.txt ( ) — 434KB
• atlc-20240130.xsd (EX-101.SCH) — 4KB
• atlc-20240130_def.xml (EX-101.DEF) — 14KB
• atlc-20240130_lab.xml (EX-101.LAB) — 18KB
• atlc-20240130_pre.xml (EX-101.PRE) — 14KB
• atlc20240201_8k_htm.xml (XML) — 7KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. As previously disclosed, on August 10, 2022, Atlanticus Holdings Corporation (the "Company") entered into an At Market Issuance Sales Agreement (the "Sales Agreement") with B. Riley Securities, Inc. (the "Sales Agent") providing for the sale by the Company of up to an aggregate offering price of $100,000,000 of the Company's (i) 7.625% Series B Cumulative Perpetual Preferred Stock, no par value per share and liquidation preference of $25.00 per share (the "Preferred Stock"), and (ii) 6.125% Senior Notes Due 2026 (the "Notes"), from time to time through the Sales Agent, in connection with the Company's Preferred Stock and Notes "at the market" offering program. On January 30, 2024, the Company entered into a second supplemental indenture (the "Second Supplemental Indenture") to its indenture dated as of November 22, 2021 (the "Base Indenture"; as previously supplemented and as further supplemented by the Second Supplemental Indenture, the "Indenture") between the Company and U.S. Bank Trust Company, National Association (successor to U.S. Bank National Association), as trustee (the "Trustee"). The Indenture establishes the form, and provides for the issuance from time to time, if any, of the Notes. The Indenture also contains customary events of default and cure provisions. The Notes, if any, will be general unsecured obligations of the Company and rank equally in right of payment with all of the Company's existing and future senior unsecured and unsubordinated indebtedness, and will rank senior in right of payment to the Company's future subordinated indebtedness, if any. The Notes, if any, will be effectively subordinated to all of the Company's existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, and the Notes, if any, will be structurally subordinated to all existing and future indebtedness and other liabilities (including trade payables) of the Co

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 4.1 Second Supplemental Indenture, dated as of January 30, 2024, by and between the Company and U.S. Bank Trust Company, National Association, as trustee. 4.2 Form of 6.125% Senior Notes due 2026 (included in Exhibit 4.1). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Atlanticus Holdings Corporation Date: February 2, 2024 By: /s/ William R. McCamey Name: William R. McCamey Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR