Atlanticus Holdings Corporation (NASDAQ:ATLC) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.
Entry into a Material Definitive Agreement.
On November 2, 2018, FRC Funding Corporation (“FRC”), a subsidiary of Atlanticus Holdings Corporation (the “Company”), entered into an agreement to transfer certain Fortiva®branded retail point-of-sale receivables to a trust and securitize such receivables through the sale of asset backed securities (“ABS”) (the Fortiva Retail Credit Master Note Business Trust Series 2018-One). The ABS are secured by the receivables and other assets of the trust. The trust issued notes for an aggregate amount of $167.3 million to unaffiliated third parties. 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 ABS are subject to certain affirmative covenants and collateral performance tests, the failure of which could result in required early repayment of all or a portion of the outstanding balance of notes.
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Item 2.03. |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
To the extent applicable, the information contained in Item 1.01 of this Current Report is
incorporated by reference into this Item 2.03.
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Item 9.01. |
Financial Statements and Exhibits. |
(d)Exhibits
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Exhibit Number |
Description of Exhibit |
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99.1 |
Press Release issued by Atlanticus Holdings Corporation on November 5, 2018. |
Atlanticus Holdings Corp ExhibitEX-99.1 2 frcsecuritizationpressrele.htm EXHIBIT 99.1 Exhibit Exhibit 99.1ATLANTICUS HOLDINGS CORPORATION CLOSES SALE OF $167.3 MILLION ASSET BACKED SECURITIZATION TO SUPPORT THE FORTIVA® BRANDATLANTA,…To view the full exhibit click here
About Atlanticus Holdings Corporation (NASDAQ:ATLC)
Atlanticus Holdings Corporation is focused on providing financial services. Through its subsidiaries, the Company offers an array of financial products and services. The Company operates through two segments: Credit and Other Investments, and Auto Finance. The Company’s Credit and Other Investments segment includes its point-of-sale and direct-to-consumer finance operations, investments in and servicing of its various credit card receivables portfolios and other product development and limited investment in consumer finance technology platforms that capitalize on its credit infrastructure. The Company’s Auto Finance segment operations are principally conducted through its CAR platform, which purchases and services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here used car business. The Company also provides loan servicing activities.
