Imperial Holdings redeems all $50 million of 12 7/8% senior notes

By Wendy Van Sickle

Columbus, Ohio, July 16 –Imperial Holdings, Inc. redeemed all $50 million of its 12 7/8% senior secured notes on Thursday, according to a company press release.

The notes dated Nov. 10, 2014 were redeemed at 106 plus interest up to Nov. 10, 2015, according to a filing with the Securities and Exchange Commission.

Funding for the redemption came from a new seven-year $110 million asset-based revolving credit facility obtained by Imperial subsidiary Red Falcon Trust.

Borrowings on the loan bear interest at Libor plus 450 basis points with a 1% Libor floor.

The facility is backed by Red Falcon’s portfolio of life insurance policies, according to the filing.

The lenders will receive 5% of the proceeds from the policies. Amortization is 8% per annum.

The agreement expires July 15, 2022.

CLMG Corp. is the administrative agent, LNV Corp. the initial lender, Imperial Finance & Trading, LLC the guarantor and Blue Heron the portfolio administrator.

Boca Raton, Fla.-based Imperial is a specialty finance company with a focus on providing liquidity solutions to owners of illiquid financial assets.

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