LTC Global Completes $129.6 Million Securitization of Insurance Commission Receivables

By a News Reporter-Staff News Editor at Insurance Weekly News -- LTC Global, Inc. announced that it has completed a $129.6 million securitization. The transaction consisted of the sale of asset-backed securities to seven institutional investors. The securities are rated "A (sf)" by DBRS, Inc. and backed by a diverse portfolio of insurance commission receivables arising from past sales of Long Term Care insurance policies. KeyBanc Capital Markets, Inc. acted as structuring agent, initial purchaser and placement agent.

"The transaction will enable LTC Global to continue the growth of its finance and distribution businesses," said Daniel G. Schmedlen, Jr., Chief Executive Officer of LTC Global. "This transaction is the first of its kind and represents a tremendous effort by our company, especially our finance and actuarial groups," said Schmedlen.

"KeyBanc did a great job bringing us to market as a first-time issuer in a new asset class. The offering was oversubscribed by a significant amount, and we are very satisfied with pricing," said Schmedlen.

Winston & Strawn LLP advised LTC Global in connection with the transaction. "Jeffrey Stern and his team at Winston were superb in structuring and executing the transaction, especially considering the sui generis nature of the deal," said Schmedlen. About LTC Global LTC Global is the leading provider of capital to insurance agents and agencies through commission advance programs and renewal commission purchases. Through its agency subsidiaries, LTC Global is a national distributor of life and health insurance products and the largest independent distributor of Long Term Care insurance. LTC is headquartered in Fort Myers, Florida. For more information about LTC Global, visit www.ltcglobal.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20180712005721/en/

Keywords for this news article include: Business, LTC Global Inc.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2018, NewsRx LLC