EMERGENT CAPITAL, INC. (NYSE:EMG) Files An 8-K Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Item 2.04
Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On February 20, 2019, Emergent Capital, Inc. (the “Company”) received written notice from a holder of the Company’s outstanding 8.5% Senior Unsecured Convertible Notes due 2019 (the “Convertible Notes”) issued to the Indenture, dated as of February 21, 2014, by and among the Company and U.S. Bank, National Association, as Trustee, as amended and supplemented (the “Indenture”), that the Company was in default (the “Event of Default”) under the Indenture for failure to pay the principal amount and accrued interest due upon maturity of the Convertible Notes on February 15, 2019 . The outstanding principal amount of the Convertible Notes was $1,194,000 and accrued interest thereon was $50,745.
The Event of Default, which caused an automatic acceleration of the outstanding principal and accrued interest, had no practical effect on the Company, as such amounts were already due and payable. The Event of Default does not result in a cross-default under other debt agreements or arrangements of the Company. The total amount of $1,244,745 due, consisting of principal and accrued interest, will accrue interest at 8.5% per annum (the original interest rate of the Convertible Notes) until payment thereof is made.
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.
