Company: ATLCL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015559
Chunk: 30

Company: Atlanticus Holdings Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 30
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2)  These notes reflect modifications to either extend the maturity date, increase the loan amount or both, and are treated as accounting modifications. 

    (3) See below for additional information.
(4)Loans are subject to certain affirmative covenants tied to default rates and other performance metrics the failure of which could result in required early repayment of the remaining unamortized balances of the notes. 

    (5) Loans are associated with VIEs. See Note 7, "Variable Interest Entities" for more information.

    (6) Creditors do not have recourse against the general assets of the Company but only to the collateral within the VIEs.

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   As of  March 31, 2025, the Prime Rate was 7.50%, the Term Secured Overnight Financing Rate ("Term SOFR") was 4.32% and the Secured Overnight Financing Rate ("SOFR") was 4.41%.
    
   In  October 2015, we (through a wholly owned subsidiary) entered a revolving credit facility with a (as subsequently amended) $50.0 million revolving borrowing limit that can be drawn to the extent of outstanding eligible principal receivables (of which $49.8 million was drawn as of  March 31, 2025). This facility is secured by the loans, interest and fees receivable and related restricted cash and accrues interest at an annual rate equal to SOFR plus 3.0%. The facility matures on  October 30, 2026 and is subject to certain affirmative covenants, including a liquidity test and an eligibility test, the failure of which could result in required early repayment of all or a portion of the outstanding balance. The facility is guaranteed by Atlanticus, which is required to maintain certain minimum liquidity levels.
    
   In  October 2016, we (through a wholly owned subsidiary) entered a revolving credit facility available to the extent of outstanding eligible principal receivables of our CAR subsidiary (of which $31.6 million was drawn as of  March 31, 2025). This facility is secured by the financial and operating assets of CAR and accrues interest at an annual rate equal to SOFR plus a range between 2.25% and 2.6% based on certain ratios. The loan is subject to certain affirmative covenants, including a coverage ratio, a leverage ratio and a collateral performance test, the failure of which could