v3.26.1
Note 9 - Notes Payable
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Debt Disclosure [Text Block]
9.

Notes Payable

 

Notes Payable, at Face Value

 

Other notes payable outstanding as of June 30, 2026 and  December 31, 2025 that are secured by the financial and operating assets of either the borrower, another of our subsidiaries or both, include the following, scheduled (in millions); except as otherwise noted, the assets of our holding company (Atlanticus Holdings Corporation) are subject to creditor claims under these scheduled facilities:

 

            

Outstanding as of

 
            

June 30, 2026

  

December 31, 2025

 

Revolving credit facilities at a weighted average interest rate equal to 6.7% as of June 30, 2026 (7.1% as of December 31, 2025) secured by the financial and operating assets of CAR and/or certain receivables and restricted cash with a combined aggregate carrying amount of $7,205.2 million as of June 30, 2026 ($7,340.6 million as of December 31, 2025)

Maturity date

Interest rate (6)

 

Amortization period (months) (7)

  

Committed capacity

         

Revolving credit facility (1) (2)

December 2028

SOFR plus 2.25%-2.60%

  —  $65.0  $20.1  $24.9 

Revolving credit facility (2) (3)

January 2028

SOFR plus 3.00%

  —   50.0   —   — 

Revolving credit facility (2) (3)

October 2026

Term SOFR plus 3.60%

  —   75.0   39.3   74.6 

Revolving credit facility (2) (3)

April 2028

Term SOFR plus 2.85%

  —   40.0   11.6   12.2 

Revolving credit facility (2) (3)

March 2028

Prime Rate

  12   75.0   50.0   51.1 

Revolving credit facility (2) (3) (4)

May 2030

Fixed 6.33%

  18   325.0   325.0   325.0 

Revolving credit facility (2) (3) (4)

August 2027

Term SOFR plus 1.80%-6.85%

  12   158.3   47.5   31.7 

Revolving credit facility (2) (3)

August 2027

Term SOFR plus 3.50%

  —   25.0   —   — 

Revolving credit facility, repaid in June 2026 (3) (4)

September 2029

Fixed 9.51%

  18   —   —   300.0 

Revolving credit facility (3) (4)

November 2029

Fixed 8.86%

  18   250.0   250.0   250.0 

Revolving credit facility (3) (4)

July 2030

Fixed 7.78%

  18   100.0   100.0   100.0 

Revolving credit facility (3) (4)

September 2029

Fixed 6.60%

  18   200.0   200.0   200.0 

Revolving credit facility (3) (4)

August 2028

Commercial paper rate (3.89%) plus 2.00%

  18   200.0   —   100.0 

Revolving credit facility (3) (4)

December 2030

Fixed 6.76%

  18   350.0   350.0   350.0 

Revolving credit facility (3) (4)

January 2031

Fixed 6.74%

  18   125.0   125.0   125.0 

Revolving credit facility (3) (4)

February 2030

Fixed 5.82%

  18   200.0   200.0   200.0 

Revolving credit facility (3) (4) (5)

April 2029

Term SOFR plus 2.40%-7.80%

  12   361.9   307.6   361.9 

Revolving credit facility (3) (4) (5)

July 2029

Commercial paper rate (3.88% as of December 31, 2025) plus 2.25% OR Term SOFR plus 8.15% based on class of notes

  18   379.1   194.4   223.0 

Revolving credit facility, repaid in May 2026 (3) (4) (5)

July 2029

Fixed 7.46%

  18   —   —   700.0 

Revolving credit facility (3) (4) (5)

April 2029

Commercial paper rate (3.88% as of December 31, 2025) plus 2.15% OR Term SOFR plus 8.50% dependent on class of notes

  18   374.0   194.4   313.0 

Revolving credit facility, repaid in April 2026 (3) (4) (5)

June 2027

Term SOFR plus 2.00%-7.50%

  12   —   —   500.0 

Revolving credit facility (3) (4)

May 2031

Fixed 7.02%

  18   300.0   300.0   300.0 

Revolving credit facility (3) (4)

October 2031

Fixed 6.90%

  18   500.0   500.0   500.0 

Revolving credit facility (3) (4)

December 2031

Fixed 6.00%

  18   750.0   750.0   750.0 

Revolving credit facility (3) (4)

October 2033

Fixed 5.59%

  18   100.0   100.0   — 

Revolving credit facility (3) (4)

February 2032

Fixed 6.16%

  18   365.0   365.0   — 

Revolving credit facility (3) (4)

April 2029

Term SOFR plus 2.1%-6.50%

  12   500.0   500.0   — 

Revolving credit facility (3) (4)

June 2032

Fixed 5.61%

  18   400.0   400.0   — 

Revolving credit facility (3) (4)

January 2032

Fixed 6.83%

  18   275.0   275.0   — 

Revolving credit facility

July 2028

Term SOFR plus 3.00%

  —   50.0   —   50.0 

Revolving credit facility (2) (3)

May 2027

Term SOFR plus 3.75%

  8   100.0   —   — 

Revolving credit facility (2) (3)

April 2029

Term SOFR plus 2.50%

  18   125.0   —   — 
                   

Other facilities

                  

Other debt

          5.2   5.3 

Total notes payable before unamortized debt issuance costs and discounts

          5,610.1   5,847.7 

Unamortized debt issuance costs and discounts

          (31.2)  (28.9)

Total notes payable outstanding, net

         $5,578.9  $5,818.8 
                   

 

(1)

Loan is subject to certain affirmative covenants, including a coverage ratio, a leverage ratio and a collateral performance test, the failure of which could result in required early repayment of all or a portion of the outstanding balance by our CAR Auto Finance operations.

(2)

These notes reflect modifications to either extend the maturity date, increase the loan amount or both, and are treated as accounting modifications.

(3)

Loans are associated with VIEs. See Note 7, "Variable Interest Entities" for more information.

(4)

Creditors do not have recourse against the general assets of the Company but only to the collateral within the VIEs.

(5)

Notes payable assumed as part of acquisition of Mercury. 

(6)

For fixed rate debt instruments, interest rate is shown as a weighted average. Rates shown do not include the impact of the amortization of debt issuance costs or debt discounts.

(7)

Amortization period (months) reflects the scheduled paydown period prior to the stated Maturity date.

 

As of June 30, 2026, the Prime Rate was 6.75%, the Term Secured Overnight Financing Rate ("Term SOFR") was 3.65% and the Secured Overnight Financing Rate ("SOFR") was 3.68%.

 

Revolving loans in the table above may be drawn upon to the extent of outstanding eligible receivables. Revolving loans are also subject to some or all of the following affirmative covenants (among others): coverage ratios, leverage ratios, liquidity, eligibility, payment, delinquency, charge off or collateral performance tests, the failure of which could result in required early repayment of all or a portion of the outstanding balance. As of June 30, 2026, we were in compliance with the covenants underlying our various notes payable and credit facilities.

 

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, 2026 and 2025 totaled $0.4 million, $0.7 million, $0.3 million and $0.7 million, respectively. We repurchased $5.5 million and $13.6 million of the outstanding principal amount of these 2026 Senior Notes in the three and six months ended June 30, 2026. There were no repurchases for the same period in 2025.

 

In January and February 2024, we issued an aggregate of $57.2 million aggregate principal amount of 2029 Senior Notes. In July 2024, we issued an additional $60.0 million aggregate principal amount of the 2029 Senior Notes. The 2029 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 2029 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 2029 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 2029 Senior Notes bear interest at the rate of 9.25% per annum. Interest on the 2029 Senior Notes is payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. The 2029 Senior Notes will mature on January 31, 2029. We are amortizing fees associated with the issuance of the 2029 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, 2026 and 2025 totaled $0.4 million, $0.7 million, $0.3 million, and $0.7 million, respectively.

 

In August 2025, we issued $400.0 million principal amount of 9.750% Senior Notes due 2030 (the "2030 Senior Notes"). The 2030 Senior Notes bear interest at the rate of 9.75% per annum. Interest on the 2030 Senior Notes is payable semi-annually in arrears on March 1 and September 1 of each year. The 2030 Senior Notes will mature on September 1, 2030. We are amortizing fees associated with the issuance of the 2030 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, 2026 totaled $0.2 million and $0.5 million.

 

The 2026 Senior Notes, 2029 Senior Notes and 2030 Senior Notes are collectively included on our condensed consolidated balance sheet as "Senior Notes, net." See Note 4 "Shareholders' Equity and Preferred Stock" for more information.