ATLANTA, Nov. 5, 2018 /PRNewswire/ -- Atlanticus Holdings
Corporation (NASDAQ: ATLC) ("Atlanticus", "we", "our" or "us"), a
technology enabled consumer finance company, today announced an
agreement to sell $167.3
million of asset backed securities ("ABS") secured by
Fortiva® branded retail point-of-sale receivables
(the Fortiva Retail Credit Master Note Business Trust Series
2018-One). The transaction represents the first term ABS issuance
sponsored by us since 2004 and follows the closing of our
$100.0 million revolving credit
facility in June 2018 secured by
Fortiva® branded general-purpose credit card
receivables.
Proceeds from the sale of the ABS will be used to pay down
certain existing term and revolving credit facilities and fund the
acquisition of additional receivables. These repayments will then
create more than $145.0 million of
undrawn bank commitments to allow for future investments in retail
point-of-sale receivables. The terms of the ABS allow for a
two-year revolving structure with a subsequent 18-month
amortization period. The weighted average interest rate on the
securities is 5.76%.
"The sale of these asset backed securities reflect the continued
demand both by consumers and investors for financial products that
provide consumers with flexible financing options for purchases,"
said Jeff Howard, President,
Atlanticus Holdings Corporation. "Coupled with the recent closing
of a revolving credit facility secured by Fortiva®
branded general-purpose credit card receivables, we continue to be
well positioned to execute growth strategies for both product
classes and we are excited to continue assisting financial
institutions in the offering of financial products and services to
consumers that are overlooked by the traditional banking
system."
About Atlanticus Holdings Corporation
Founded in 1996,
our businesses, including the Fortiva® branded
products, utilize proprietary analytics and a flexible technology
platform to enable financial institutions to provide various credit
and related financial services and products to the financially
underserved consumer credit market. We apply the experience gained
and infrastructure built from servicing over 17 million customers
and $25 billion in consumer loans
over our 22-year operating history to support lenders that
originate a range of consumer loan products. These products include
retail credit, personal loans and credit cards marketed through our
omnichannel platform which includes, retail point-of-sale, direct
mail solicitation, Internet-based marketing, and partnerships with
third parties. Additionally, through its 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 that are made pursuant to safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include statements, among other
things, concerning use of proceeds from the sale of asset backed
securities; growth and funding strategies; and consumer demand for
our products. Although Atlanticus believes the expectations
reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties and you should not place
undue reliance on such statements. Actual results may differ
materially from those expressed or implied in such statements.
Important factors that could cause actual results to differ
materially from these expectations include, among other things, the
timing and financing of originations; and other risk factors
detailed from time to time in Atlanticus' reports filed with the
Securities and Exchange Commission. The forward-looking statements
contained herein speak only as of the date of this press release.
Atlanticus undertakes no obligation to update or revise any
forward-looking statement, except as may be required by law.
Contact: Investor Relations
Mitch Saunders
770.828.2626
Mitch.Saunders@Atlanticus.com
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SOURCE Atlanticus Holdings Corporation