Imperial Holdings Plans Rights Offering of 5.4 Mln Shares For Total $30.7 Mln

Imperial Holdings said it plans to conduct a rights offering of up to 5.4 million shares for a total of approximately $30.7 million. IFT edged lower 0.5% on Thursday, in the lower half of the 52-week range between $5.86 and $7.52.

The specialty finance company said it will distribute one non-transferable right for every four shares of common stock owned by shareholders of record at the close of business on May 26. No fractional rights or shares will be issued.

Each right entitles shareholders to subscribe for one stock at $5.75 each. The subscription period runs from May 27 to June 18. If some shareholders elect not to exercise their rights, other shareholders that fully exercised their rights can subscribe for additional shares, subject to proration. If the offering is oversubscribed, the company pay issue up to 1.3 million additional shares.

Proceeds will be used to make selective investments the life settlement asset class and for general corporate purposes, including premium payments and working capital.Mukesh Mali | PressKM | PressAK | | Gossip cage

Imperial said it expects directors to participate in the rights offering. Also, Bulldog Investors, LLC, an affiliate of certain of its directors and its largest shareholder, intends to subscribe for at least $10 million of shares, inclusive of its oversubscription privilege.