Abacus Life Closes $150 Million Debt Financing Facility to Support Continued Growth
Rhea-AI Summary
Abacus Life (NASDAQ: ABL) has secured a $150 million debt financing facility, arranged and led by Sagard, with significant commitment from Värde Partners. The facility features flexible terms designed to support the company's long-term strategic objectives.
CEO Jay Jackson emphasized that this funding will meet inventory demand without requiring additional equity raises in the near future. Chief Capital Officer Elena Plesco highlighted this as a significant milestone providing financial flexibility for executing their strategic vision. The company plans to use the funds to strengthen operations and expand capabilities.
Positive
- Secured $150 million debt financing facility
- No need for equity dilution in foreseeable future
- Strong institutional backing from Sagard and Värde Partners
- Flexible terms supporting long-term growth
Negative
- Increased debt obligations on balance sheet
News Market Reaction
On the day this news was published, ABL gained 2.69%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
ORLANDO, Fla., Dec. 10, 2024 (GLOBE NEWSWIRE) -- Abacus Life, Inc. (“Abacus” or the “Company”) (NASDAQ: ABL), a pioneering global alternative asset manager specializing in leveraging longevity data and actuarial technology to offer uncorrelated investment opportunities, announced today that it has successfully closed a
“We are excited to close this debt financing facility, which represents a major step forward for Abacus Life,” said Jay Jackson, CEO of Abacus Life. “This funding provides us with sufficient capital to meet our inventory demand and ensures that we will not need to raise incremental equity in the foreseeable future. It empowers us to continue growing our business and strengthen our position as an industry leader. We are confident that this facility will play a critical role in our continued success as we expand our capabilities and deliver value to our stakeholders.”
Elena Plesco, Chief Capital Officer of Abacus Life, added, “This facility represents a significant milestone for our Company, providing us with the financial flexibility to continue executing our strategic vision. The strong support from our new institutional partners at Sagard and Värde reflects confidence in our business model and growth trajectory. We are committed to using these funds to further strengthen our operations and unlock new opportunities for both our clients and investors.”
Adam Vigna, Co-founder and CIO of Sagard, commented on the transaction: "This underscores our commitment to providing innovative credit solutions. We are excited to collaborate with Abacus Life. This facility will provide them with the resources to strengthen operations, expand offerings, and solidify their position as a market leader."
“It has been a pleasure to work with Jay and the team over the past several years, and we are pleased to partner with Sagard on this bespoke financing solution to support Abacus Life’s continued growth as a leader in life settlements,” said Monty Cook, Head of Asset-Based Finance, North America Lending at Värde Partners.
Advisors
Milbank LLP is acting as legal advisor to Abacus Life and Morrison & Foerster LLP is acting as legal advisor to Sagard and Värde Partners.
About Abacus
Abacus is a pioneering global alternative asset manager and market maker specializing in uncorrelated financial products. The company leverages its proprietary, cutting-edge longevity data and actuarial technology to purchase life insurance policies from consumers seeking liquidity. This creates a high-return asset class uncorrelated to market fluctuations for institutional investors.
With nearly
Abacus is expanding its leading expertise in longevity and lifespan into new growth areas:
- ABL Wealth - Leverages decades of data and proprietary algorithms to offer longevity-based wealth management platforms that enable financial advisors to create customized plans and provide access to uncorrelated investments.
- ABL Tech - A groundbreaking technology service that delivers advanced real-time data tracking and analysis for pension funds, governments, insurance companies, retirement associations, and more.
Through each new channel, Abacus is revolutionizing the future of asset management and financial planning, centered on longevity and lifespan.
About Sagard
Sagard is a global multi-strategy alternative asset management firm with US
For more information, visit www.sagard.com or follow us on LinkedIn @Sagard
About Värde Partners
Värde Partners is a leading global investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested more than
Contacts:
Investor Relations
Robert F. Phillips – SVP Investor Relations and Corporate Affairs
rob@abacuslife.com
(321) 290-1198
David Jackson – IR/Capital Markets Associate
djackson@abacuslife.com
(321) 299-0716
Abacus Life Public Relations
press@abacuslife.com
FAQ
What is the size of Abacus Life's (ABL) new debt financing facility?
Who are the main lenders in Abacus Life's (ABL) December 2024 financing?
Will Abacus Life (ABL) need to raise additional equity after this financing?
How will Abacus Life (ABL) use the new debt facility?
