A life settlement financing company hopes to raise up to $287.5 million through an initial public offering (IPO).
Imperial Holdings Inc., Boca Raton, Fla., plans to list itself on the New York Stock Exchange under the symbol IFT. To date, it has not announced the timing or pricing of its stock offering.
The offering is being underwritten by FBR Capital Markets & Company, Arlington, Va.
The company was founded in 2006 and reported an $8.6 million net loss on $97 million in revenue for 2009, according to the registration statement it filed filed with U.S. Securities and Exchange Commission. The company’s income comes from making loans to finance policy premiums as well as from loan fees and fees from referring agents.
Imperial also buys structured settlements and sells the structured settlement assets to other parties.
“With the net proceeds of this offering, we intend to fund our future premium finance transactions with equity financing instead of debt financing, thereby substantially reducing the cost of operating this business and increasing its profitability,” Imperial says in its filing.
Since 2008, Imperial’s premium financing costs have increased significantly, the company says. The company’s financing costs increased to 30.5% per year during the first quarter this year, up from 14.5% in 2007, the company says.