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Source: Donna Horowitz, The Deal |


Abacus Life Inc. (ABL) said it sold $31 million in notes at 9.875% interest in a Thursday, Nov. 2, public offering.

The sale of the notes, which will come due in five years, is believed to be the first public offering of such debt that can trade by the life settlement market, according to Abacus CEO Jay Jackson.

“We crushed it,” Jackson said. “We were excited.”

Although the notes were sold Thursday, he said Abacus has firm commitments from the buyers to fund them by Nov. 10 when the offering closes.

In addition, Abacus said in a Friday statement that the company has granted its underwriters an option to buy up to an additional $4.65 million in aggregate principal of notes to cover overallotments, if any.

Abacus plans to list the notes on Nasdaq Global Market under the symbol “ABLLL”, which will be able to trade within 30 days of the original issue date.

The company has advised investors to carefully consider the investment objective, risks, charges and expenses of the company before investing.

The fixed-rate senior notes are unsecured obligations of the company and will rank in right of payment to all of Abacus’ other senior unsecured indebtedness.

The notes won’t be secured by the company’s assets but will be subordinated to any future secured indebtedness of Abacus.

The company’s statement said net proceeds will be used to refinance outstanding debt, with the remainder for general corporate purposes.

It previously said in a public filing the notes would be used to refinance its Owl Rock Capital Corp. (ORCC) facility. The Owl Rock loan is for up to $50 million. The initial amount was for $25 million with another $25 million available for 180 days after the facility closed. The interest rate is 12% for the Owl Rock facility.

Two previous notices by Abacus filed with the Securities and Exchange Commission said the company expected to raise higher amounts. One on Wednesday said it would seek $40 million in senior notes and one filed on Sept. 18 said the firm would seek up to $60 million in notes.

Abacus traded Thursday at $6.63 a share as of 1:46 p.m. Eastern Daylight Time, up 6.08% from the previous close of $6.25.

Abacus is an Orlando, Fla.-based life settlement provider, which ranks as the second biggest purchaser of policies in the market in annual surveys by The Life Settlements Report,

Piper Sandler & Co., Ladenburg Thalmann & Co. Inc. and InspereX LLC are serving as joint book-running managers for the offering. A.G.P., also known as Alliance Global Partners, is acting as co-manager of the offering.

Locke Lord LLP is the legal counsel to Abacus while Alston & Bird LLP is the legal counsel to the underwriters.


Source: Donna Horowitz, The Deal |

Blake Gallimore

Author Blake Gallimore

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