White Eagle cuts revolver to $250 million, raises interest by 50 bps

By Wendy Van Sickle

Columbus, Ohio, Nov. 9 – White Eagle Asset Portfolio, LP reduced its 15-year revolving credit facility to $250 million from $300 million and raised its pricing, according to a Monday press release.

The facility’s interest rate was raised by 50 basis points to Libor plus 450 bps with a 1.5% Libor floor.

The amendment provides for earlier participation in portfolio cash flows, according to the release.

Previously, White Eagle did not expect to receive any cash distributions under the waterfall provisions of its revolver until about 2019 as all proceeds from the life insurance policies pledged as collateral were first to be used to pay down the facility’s outstanding principal balance.

As amended, if certain loan-to-value ratios are achieved, a portion of the amount that previously would have been used only to reduce the outstanding principal balance will now be distributed to White Eagle.

Generally, if the loan-to-value ratio is less than 50% but at least 25%, then 35% of the available proceeds will be distributed to White Eagle. If the loan-to-value ratio is less than 25%, then 65% of the available proceeds will be distributed to the company.

Depending on the timing of policy proceeds, as modeled, White Eagle is expected to receive waterfall distributions of about $60 million over the next three years.

Borrowings will continue to be used to pay premiums on the life insurance policies pledged as collateral and for fees and expenses of third-party service providers.

White Eagle will no longer draw under the facility to pay interest, but any policy proceeds will still be available to pay outstanding interest when due through the facility’s waterfall provisions.

White Eagle is a subsidiary of Emergent Capital, a Boca Raton, Fla.-based specialty finance company that invests in life settlements.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.