Atlanticus Refinances Securitization Facility

Rhea-AI Summary

Atlanticus (NASDAQ: ATLC) announced that on December 4, 2025 its Mercury subsidiaries refinanced an existing $750 million term securitization. The replacement bonds have a three-year tenor, improved structural elements, and delivered an immediate 200+ basis point reduction in coupon versus the prior bonds.

Management said the refinancing reduces funding costs, supports integration of Atlanticus and Mercury, and positions the combined company to pursue further cost reductions and brand extension into 2026.

Positive

• $750 million term securitization refinanced
• Immediate 200+ basis point coupon reduction
• New bonds carry a three-year tenor
• Issuer cites improved structural elements in transaction
• Management reports integration progress ahead of plan

Negative

• None.

Key Figures

Refinanced securitization $750 million Existing term securitization refinanced by Mercury subsidiaries

New bond tenor 3 years Maturity of new securitization bonds

Coupon reduction 200+ basis points Immediate reduction in coupon versus prior bonds

Market Reality Check

$63.59 Last Close

Volume Volume 71,764 is at 0.85x the 20-day average, suggesting moderate trading interest pre‑announcement. normal

Technical Shares at $61.44 are trading above the 200-day MA of $55.40 and 22.14% below the 52-week high.

Peers on Argus

ATLC gained 5.1% while peers showed mixed, smaller moves: LX -0.62%, ECPG +0.8%, EZPW +1.89%, OPFI +3.21%, WRLD +2.68%. The magnitude of ATLC’s move appears more stock-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 12	Preferred dividend	Positive	+1.7%	Board approved quarterly cash dividend on Series B preferred shares.
Nov 10	Earnings update	Positive	-5.6%	Q3 2025 results with major scale expansion but higher expenses and interest.
Sep 11	Acquisition	Positive	+6.2%	Cash acquisition of Mercury Financial adding large receivables and accounts base.
Aug 21	Preferred dividend	Positive	+5.6%	Declaration of quarterly dividend on Series B preferred stock.
Aug 14	Debt offering	Negative	-1.3%	$400 million 9.750% Senior Notes offering to refinance and fund growth.

Pattern Detected

Dividend and acquisition announcements have historically seen positive reactions, while debt financing and the latest earnings update drew more muted or negative responses. Overall, price moves have mostly aligned with the underlying news tone, with one notable divergence on a strong growth quarter.

Recent Company History

Over the past six months, Atlanticus has combined balance sheet expansion with capital markets activity and shareholder returns. The company completed the Mercury acquisition, adding over $3 billion in receivables and boosting managed receivables above $6 billion. It priced a $400 million senior notes offering and reported strong Q2 and Q3 revenue growth, though expenses and leverage increased. Regular preferred dividends were maintained. Today’s refinancing of a $750 million securitization ties directly to these prior growth and funding moves by targeting lower funding costs post‑Mercury integration.

Market Pulse Summary

This announcement highlights a refinancing of a $750 million term securitization by Atlanticus’ Mercury subsidiaries, extending bond tenor to three years and securing a reported 200+ basis point coupon reduction. It follows a period of rapid growth, including the Mercury acquisition and a $400 million senior notes offering. Investors may track how these lower-cost securitizations affect overall interest expense, leverage trends, and progress against management’s integration and cost-reduction goals.

Key Terms

securitization financial

"refinanced an existing $750 million term securitization."

Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.

basis point financial

"achieved an immediate 200+ basis point reduction in the coupon rate"

A basis point is a unit equal to one one‑hundredth of a percent (0.01%), used to describe very small changes in interest rates, bond yields, fees or other percentage figures. Think of it like a single dollar change on $10,000: tiny by itself but meaningful when applied to large sums or repeated over time, so investors use basis points to track and compare small but financially significant moves precisely.

AI-generated analysis. Not financial advice.

ATLANTA, Dec. 10, 2025 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation (NASDAQ: ATLC) (Atlanticus, the Company, we, our or us), a financial technology company that enables its bank, retail and healthcare partners to offer more inclusive financial services to millions of everyday Americans, today announced that on December 4, 2025, the Mercury subsidiaries of Atlanticus refinanced an existing $750 million term securitization. The new bonds are for three years, have more favorable structural elements, and achieved an immediate 200+ basis point reduction in the coupon rate, when compared to the bonds they replaced.

Jeff Howard, President and Chief Executive Officer at Atlanticus stated “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 and empower more everyday Americans. We are ahead of plan on our integration efforts and are pleased with the focus of our combined teams. We look forward to building on this success into 2026 and beyond.”

About Atlanticus Holdings Corporation

Empowering Better Financial Outcomes for Everyday Americans

Atlanticus™ technology enables bank, retail, and healthcare partners to offer more inclusive financial services to everyday Americans through the use of proprietary technology and analytics. We apply the experience gained and infrastructure built from servicing over 20 million customers and $48 billion in consumer loans over more than 25 years of operating history to support lenders that originate a range of consumer loan products. These products include retail and healthcare private label credit and general purpose credit cards marketed through our omnichannel platform, including retail point-of-sale, healthcare point-of-care, direct mail solicitation, internet-based marketing, and partnerships with third parties. Additionally, through our Auto Finance subsidiary, Atlanticus serves the individual needs of automotive dealers and automotive non-prime financial organizations with multiple financing and service programs.

Contact:
Investor Relations, investors@atlanticus.com
Dan Mauch, dan.mauch@atlanticus.com
Sara Savarino, sara.savarino@atlanticus.com

FAQ

What did Atlanticus (ATLC) announce on December 4, 2025 regarding securitization?

Atlanticus announced that Mercury subsidiaries refinanced a $750 million term securitization on December 4, 2025.

How much did Atlanticus reduce its coupon in the December 2025 refinancing?

The new bonds achieved an immediate 200+ basis point reduction in coupon versus the replaced bonds.

What is the term of the new Atlanticus (ATLC) securitization bonds?

The replacement bonds have a three-year tenor.

How does Atlanticus say the refinancing affects its cost structure?

Company management said the refinancing highlights early successes in reducing costs across Atlanticus and Mercury.

Will the December 2025 refinancing affect Atlanticus's Mercury brand plans for 2026?

Management stated the refinancing furthers goals to extend the Mercury brand and support growth into 2026.

How large was the securitization that Atlanticus refinanced on December 4, 2025?

Atlanticus refinanced an existing term securitization of $750 million.