Imperial Holdings Closes Facility For Up To $100M With Indaba Capital Management

Imperial Holdings, Inc.

("Imperial"), a specialty finance company with a focus on providing liquidity solutions to owners of illiquid financial assets, announced today it has entered into an agreement to sell up to $100 million in senior secured notes to an affiliate of Indaba Capital Management, L.P. (“Indaba”), one of Imperial's largest shareholders. Imperial today issued, and Indaba purchased, $25 million in senior secured notes and the Company will issue an additional $25 million in senior secured notes once it has invested $25 million in life settlement investments. Under the facility, the Company may issue, and Indaba would be obligated to purchase the remaining $50 million in senior secured notes, in two tranches of $25 million, if certain book and market value targets are met within the next twelve months. Any senior secured notes issued under the agreement will mature three years from today, although the Company has the option to extend the maturity by an additional 12 months. The Company intends to use proceeds of the notes to grow its portfolio of life settlement assets and for general corporate purposes. The issued notes will bear interest at a per annum rate of 12.875%. Antony Mitchell, CEO of Imperial, commented: “We are thrilled by this show of support from one of our largest shareholders. We are seeing accretive investment opportunities in the life settlements market and can now increase the amount of capital earmarked for deployment well into 2015.” Mr. Mitchell concluded, “It was important for us to find flexible financing at this stage in the Company's growth cycle and, with it, we have created an opportunity to match strategic opportunities in the market with our capital needs.” Derek Schrier, Managing Partner and Chief Investment Officer at Indaba, commented, “We have confidence in Imperial's management team and are encouraged by the Board's continuing commitment to enhance shareholder value. The life settlements market offers attractive, uncorrelated risk-adjusted returns and we believe Imperial has the expertise and the infrastructure to identify and execute on those opportunities in this market.”