British insurer Old Mutual Group P.L.C. announced it has agreed to sell its U.S. life insurance operations to Harbinger Capital Partners L.L.C. for $350 million

Old Mutual, London, says it will apply proceeds from the deal to reduce its debt.

Harbinger Capital, New York, an investment fund, will pay for the deal in two steps. The final payment would be due six months after completion of the agreement, which the was expected on or about Dec. 31, the announcement said.

Old Mutual announced its intention to explore the sale of its U.S. life unit, which sells terms life policies and annuities, in March.

Up to $125 million of the purchase price is to be held in escrow for six months after closing to protect Harbinger against any loss on sale of certain credit instruments for less than book value. As of June 30, the book value of these assets was $542 million and the market value was $506 million, Old Mutual stated.

Philip Falcone, CEO of Harbinger Capital Partners, called Old Mutual’s U.S. life business “an attractive proposition,” according to the announcement.