By Susanna Moon
Chicago, July 31 –Emergent Capital, Inc. said investors tendered for exchange $73,026,450, or 98.39%, of its $74,220,450 of 8.5% senior convertible notes due 2019.
The offered to exchange the convertibles for new 5% senior convertible notes due 2023 and the right to subscribe for an aggregate of 40 million shares of its common stock.
The exchange offer ran from April 18 until 5 p.m. ET on July 26.
The figure had not increased since a previous update that announced the same amount of notes had been tendered for exchange as of 5 p.m. ET on July 18.
Emergent issued $75.84 million of new 5% convertibles due Feb. 15, 2023.
As previously announced, the exchange offer and consent solicitation were conditioned on tenders and related consents by holders of more than 98% of the outstanding notes and on the other recapitalization transactions being completed.
The exchange offer had been extended multiple times, most recently from 5 p.m. ET on July 18. The exchange had originally been set to end at 5 p.m. ET on May 16 and had previously been extended to June 12, June 27, June 28 and to July 7.
The issuer also solicited consents from the holders of the 8.5% convertibles to eliminate substantially all restrictive covenants contained in the indenture governing the convertibles. The solicitation was successful, and the changes have taken effect.
Holders who tendered their convertibles for exchange were deemed to have given their consents to the proposed amendments.
In exchange for each $1,000 principal amount of old notes tendered by the expiration of the offer, holders received the total exchange value of $1,000 principal amount of new notes and the right to subscribe for 500 shares of Emergent common stock at $0.20 per share.
The aggregate principal amount of old notes tendered were deemed to include additional old notes in a principal amount equal to accrued interest.
The exchange offer did not include an early tender premium, the company previously noted.
The exchange offer was made only to noteholders who are accredited investors under Rule 501(a) or non-U.S. persons under Regulation S under the Securities Act.
Emergent is a Boca Raton, Fla., specialty finance company that invests in life settlements.
New issue
| Issuer: | Emergent Capital, Inc.
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| Issue: | Convertible notes
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| Amount: | $75.8 million
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| Maturity: | Feb. 15, 2023
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| Coupon: | 5%
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