In March of 2004, Legacy Benefits Corporation became the first life settlement company to successfully conclude a rated securitization of life insurance settlement assets. This transaction was underwritten by Merrill Lynch, was rated by Moody’s, and represents a milestone for both Legacy Benefits and the life settlement industry.
Below are some characteristics of the securitization:
- $70 million in notes backed by life insurance policies originated by Legacy Benefits Corporation were sold to institutional investors in a private placement by Merrill Lynch.
- The transaction was rated by Moody’s Investors Service. The notes were sold in two tranches; the Class A notes were rated A1 and pay a coupon of 5.35% and the Class B notes were rated Baa2 and pay a coupon of 6.05%.
- The life insurance policies purchased by Legacy Benefits Corporation as part of this transaction covered the life of individuals with an approximate weighted average age of 77.
To learn more about the securitization, please
click here to open the PDF of the press release issued by Moody’s Investors Service or
contact us.
