EMERGENT CAPITAL, INC. (NYSE:EMG) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
make an interest payment of $1.15 million (the Interest Payment)
due June 15, 2017 (the Interest Payment Date) on the Companys
15.0% Senior Notes due 2018 (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 the
Interest Payment Date, such failure would result in an event of
default (the Specified Default) under the Indenture governing the
15.0% Senior Notes dated as of March 11, 2016 (as amended
supplemented or otherwise modified from time to time, the
Indenture), between the Company and Wilmington Trust, National
Association, as indenture trustee (the Trustee), 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.
principal amount of the 15.0% Senior Notes (the Noteholders) and
the Trustee entered into a Consent and Forbearance Agreement (the
Agreement) relating to the Indenture. to the Agreement, the
Noteholders agreed to: (i) extend the Interest Payment that would
otherwise be due and payable on the Interest Payment Date to June
30, 2017 and (ii) forbear from exercising their rights and
remedies against the Company solely with respect to the Specified
Default during the period commencing on June 15, 2017 and ending
on the date that is the earlier of (a) July 1, 2017 and (b) the
date on which any other breach of any Transaction Documents (as
defined in the Indenture) by the Company occurs (the Termination
Date); provided that if the Company makes the Interest Payment in
full in accordance with the Indenture prior to the Termination
Date, the Specified Default shall be waived.
is qualified in its entirety by reference to the full text of the
Agreement, which will be filed as Exhibit 10.1 to the Companys
Quarterly Report on Form 10-Q for the period ending June 30, 2017
and is incorporated herein by reference.
to the Master Transaction Agreements (the “MTA Amendments”),
which amend each Master Transaction Agreement made as of March 15
and May 12, 2017, as amended to date and from time to time
(collectively, the “Master Transaction Agreements”), by and
between the Company, PJC Investments, LLC, a Texas limited
liability company (“PJC”), and the Consenting Convertible Note
Holders party to each Master Transaction Agreement (“Consenting
Holders”). The purpose of the MTA Amendments was to modify the
definition of “Investor” and amend the form of warrant attached
as Exhibit E to the Master Transaction Agreements (the “Warrant”)
to, among other things, contemplate vesting of the Warrant to
holders on a pro rata basis. Additionally, the MTA Amendments
extend the period by which Consenting Holders must tender into
the Convertible Note Exchange Offer.
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Item 2.04
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Triggering Events That Accelerate or Increase a Direct
Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement. |
on Form 8-K is incorporated by reference into this Item 2.04.
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.