Emergent Capital, Inc. (EMGC) announced that Emergent and certain of its subsidiaries, including White Eagle Asset Portfolio, LP, closed a financing transaction pursuant to which it will partner with Palomino JV, LP (“Palomino”) in the ownership of its portfolio of life settlement policies and will exit its former credit facility with Beal Bank.

On August 16, 2019, Emergent and certain of its subsidiaries entered into a subscription agreement with Palomino, in connection with the previously announced commitment letter with Jade Mountain Partners pursuant to which White Eagle will sell to Palomino 72.5% of its limited partnership interests.

Pat Curry, Emergent Capital’s Chairman and Chief Executive Officer, commented, “This agreement enables Emergent’s subsidiaries to exit bankruptcy and pay off the Beal Bank facility, moving forward with a sustainable capital structure, a strong, like-minded financing partner in Jade Mountain and a small amount of debt as opposed to the mountain of debt that we inherited.”

The proceeds of the Investment will be used primarily to pay off and terminate White Eagle’s revolving credit facility with an affiliate of Beal Bank (the “Credit Facility”). The termination of the Credit Facility is in accordance with the Plan of Reorganization for Lamington Road Designated Activity Company (“Lamington”), White Eagle General Partner, LLC (“WEGP”) and White Eagle approved by the United States Bankruptcy Court for the District of Delaware.