EMERGENT CAPITAL, INC. (NYSE:EMG) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
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Entry into a Material Definitive Agreement.
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National Association, as trustee, entered into the First
Supplemental Indenture (the “Senior Supplemental Indenture”),
implementing certain amendments to the Indenture dated as of
March 11, 2016 (the “Senior Secured Indenture”) governing the
Companys outstanding 15.0% Senior Secured Notes due 2018 (the
“15.0% Senior Notes”) following the Companys receipt of requisite
consents of the holders of the 15.0% Senior Notes. The Senior
Supplemental Indenture amends the Senior Secured Indenture to:
(i) amend the definition of “Permitted Indebtedness” to include
all 8.5% Senior Unsecured Convertible Notes (the “Convertible
Notes”) issued by the Issuer under the Indenture dated February
21, 2014 between the Company and U.S. Bank National Association
(the “Convertible Indenture”) after February 14, 2017, in lieu of
a cash payment of interest due to the holders of the Convertible
Notes, and (ii) add Section 4.07(e) to restrict the Company from
increasing the interest rate payable on the Convertible Notes.
Association, as trustee, entered into the First Supplemental
Indenture (the “Convertible Supplemental Indenture”),
implementing certain amendments to the Convertible Indenture
governing the Convertible Notes. The Convertible Supplemental
Indenture amends the Convertible Indenture to, among other
things, allow for the issuance of Convertible Notes in
denominations of $1.00 principal amount and multiples of $1.00.
aggregate principal amount of its Convertible Notes (the
“Additional Convertible Notes”) following the Companys receipt of
requisite consents of the holders of the Convertible Notes of
approximately 98% of the aggregate principal amount of
Convertible Notes (the “Consenting Holders”), to the consent
solicitation in respect of the Convertible Notes that commenced
on February 14, 2017 (the “Consent Solicitation”), whereby each
Consenting Holder agreed to accept Additional Convertible Notes
in lieu of a cash payment of interest on the Convertible Notes
due February 15, 2017 (the “2017 Interest Payment Date”). All
Additional Convertible Notes issued by the Company to Consenting
Holders were issued under the Convertible Indenture and such
Additional Convertible Notes have identical terms to existing
Convertible Notes. Interest on the Additional Convertible Notes
will accrue from February 15, 2017.
and Convertible Supplemental Indenture is a summary only and is
qualified in its entirety by reference to the full text of the
Senior Supplemental Indenture and Convertible Supplemental
Indenture, which will be filed as Exhibits 4.1 and 4.2 to this
Current Report on Form 8-K and are incorporated herein by
reference.
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Item 2.03
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Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
on Form 8-K is incorporated by reference into this Item 2.03.
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Item 8.01
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Other Events.
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March 15, 2017, on the 15.0% Senior Notes, of which $30.0 million
principal amount was outstanding on that date. If the interest
payment is not made within five business days of its due date,
such failure would result in an event of default under the Senior
Secured Indenture governing the 15.0% Senior Notes, and the
trustee or holders of at least 25% in principal amount of the
outstanding 15.0% Senior Notes may declare the principal,
premium, if any, and accrued but unpaid interest immediately due
and payable.
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Item 9.01
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Financial Statements and Exhibits.
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4.1
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First Supplemental Indenture, dated as of March 9,
2017, by and among Emergent Capital, Inc. and Wilmington Trust, National Association. |
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4.2
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First Supplemental Indenture, dated as of March 13,
2017, by and among Emergent Capital, Inc. and U.S. Bank National Association. |
About EMERGENT CAPITAL, INC. (NYSE:EMG)
Emergent Capital, Inc., formerly Imperial Holdings, Inc., is a specialty finance company that invests in asset classes, primarily life settlements. The Company, through its subsidiary companies, owns a portfolio of approximately 630 life insurance policies (life settlements). The Company purchases individual policies and portfolios of life insurance policies and manages those assets based on actuarial and market data. The Company provides customized liquidity solutions to owners of illiquid financial assets in two markets, which include life finance and structured settlements. The Company focuses on lending to outright purchases of portfolios, to tertiary trades, as well as individual secondary market purchases. The Company invests in short and long-term life settlement investments. EMERGENT CAPITAL, INC. (NYSE:EMG) Recent Trading Information
EMERGENT CAPITAL, INC. (NYSE:EMG) closed its last trading session up +0.015 at 0.295 with 3,492,420 shares trading hands.
