By Lisa Kerner
Charlotte, N.C., March 28 – Emergent Capital, Inc. sold about $8.8 million of additional 15% senior secured notes due Sept. 14, 2018 on Thursday, according to an 8-K filing with the Securities and Exchange Commission.
Proceeds will be used for general corporate purposes.
The additional notes were issued pursuant to an indenture dated March 11, 2016 between the company and Wilmington Trust, NA as indenture trustee.
The indenture provides for the issuance of up to $30 million of Emergent’s senior secured notes due 2018. Of the total, $21.2 million was issued on the initial closing date.
Emergent may redeem the notes at any time, and must redeem the notes in full upon additional issuances of debt, at a make-whole price calculated by reference to Treasuries plus 50 basis points.
The notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration under the applicable securities laws.
Emergent Capital is a Boca Raton, Fla.-based specialty finance company focused on life insurance settlements.
| Issuer: | Emergent Capital, Inc.
|
| Issue: | Senior secured notes
|
| Amount: | $8.8 million add-on
|
| Coupon: | 15%
|
| Maturity: | Sept. 14, 2018
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement: | March 24
|
| Distribution: | Private placement
|
| Total amount: | $30 million
|
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