Company: ATLCL
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025502
Chunk: 39

Company: Atlanticus Holdings Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 39
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00%. The facility matures on  September 15, 2027.
    
   In  May 2025, we (through a wholly owned subsidiary) sold $350.0 million of ABS secured by certain credit card receivables (expiring  July 16, 2029). A portion of the proceeds from the sale was used to pay down other revolving facilities associated with our credit credit receivables, noted above, and the remaining proceeds were invested in the acquisition of receivables. The terms of the ABS allow for a 32-month revolving structure with an 18-month amortization period. The interest rate on the securities is fixed at 6.76%.
    
   As of  June 30, 2025, we were in compliance with the covenants underlying our various notes payable and credit facilities.

       22

   Senior Notes, net
    
   In  November 2021, we issued $150.0 million aggregate principal amount of 2026 Senior Notes. The 2026 Senior Notes are 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 2026 Senior Notes are 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 2026 Senior Notes are structurally subordinated to all existing and future indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries (excluding any amounts owed by such subsidiaries to the Company). The 2026 Senior Notes bear interest at the rate of 6.125% per annum. Interest on the 2026 Senior Notes is payable quarterly in arrears on  February 1,  May 1,  August 1 and  November 1 of each year. The 2026 Senior Notes will mature on  November 30, 2026. We are amortizing fees associated with the issuance of the 2026 Senior Notes into interest expense over the expected life of such notes. Amortization of these fees for the three and six months ended  June 30, 2025 and 2024 totaled $0.3 million, $0.7 million, $0.3 million and $0.7 million