Atlanticus Holdings Corporation (NASDAQ: ATLC) completed a $750 million refinancing of a previously issued securitization on December 4, 2025. The new three‑year bonds carry a coupon that is more than 200 basis points lower than the original rate, delivering a significant reduction in interest expense for the company and its partners.
The refinancing is expected to save Atlanticus roughly $15 million in annual interest payments, assuming a 5% coupon on the original debt. The lower coupon also reduces the company’s weighted‑average cost of capital and improves cash‑flow generation, giving Atlanticus additional liquidity to fund growth initiatives.
Atlanticus has positioned the refinancing as part of a broader strategy to lower financing costs across its combined operations. The company plans to reinvest the savings into expanding its Credit as a Service and Auto Finance platforms, while also using the proceeds to support share repurchases and other capital‑allocation initiatives.
"We appreciate the continued support of investors around the world in our securitization programs. This refinancing highlights the early successes we have achieved in reducing costs across the combined Atlanticus and Mercury organization and furthers our goals to extend the reach of the Mercury brand," said CEO Jeff Howard.
The new bonds were issued under favorable market conditions, reflecting Atlanticus’s strong credit profile and the company’s ability to secure attractive financing terms. The refinancing strengthens Atlanticus’s financial health and positions it to pursue additional strategic acquisitions in the underserved consumer credit market.
By lowering its debt cost, Atlanticus improves its ability to invest in high‑growth segments and maintain a conservative yet opportunistic capital strategy, reinforcing its competitive position in the financial‑technology space.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.