All amounts are shown in United States dollars, unless otherwise specified.
TORONTO, November 01, 2021 (GLOBE NEWSLETTER) – Mont Logan Capital Inc. (NEO: MLC) (âMount Loganâ, âusâ, âweâ or the âCompanyâ) announces that it has completed the previously announced acquisition of 100% of the shares of Capacity insurance company (“Capacity”) for a purchase price of $ 20 million (the âPurchase Contributionâ) includes the issuance of an unsecured promissory note in the amount of $ 15 million and $ 5 million of ordinary shares (the âSharesâ) of Mount Logan (the âTransactionâ). wholly owned subsidiary of Mount Logan, Mount Logan Management LLC (âML Managementâ) has now been engaged as an investment advisor for a significant portion of Ability’s assets, thereby increasing the assets under management of ML Management (âAUMâ). The transaction was approved by both the Nebraska Department of Insurance as good as Neo Bourse inc.
Capacity is a Nebraska insurer and domiciled reinsurer of long-term care contracts with approximately $ 900 million of statutory assets invested in June 30, 2021. Ability is unique in the insurance industry in that the morbidity risk of its long-term care portfolio has been largely reinsured with third parties, and Ability no longer insures or reinsures new care-related risks. long term. The seller (as defined below) has also provided certain protections which increase the credit quality of Ability’s investment portfolio and limit the risk associated with Ability’s long-term care liabilities. As part of the transaction, the purchase consideration was pledged to Ability to support Ability’s investment portfolio. As part of the Transaction, Mount Logan invested $ 10 million capital in Ability to strengthen Ability’s balance sheet and launch an annuity reinsurance platform, which is expected to reinsure $ 150 million fixed annuities within six to twelve months. Anna elliot and David Charsky, current members of Ability’s management team, will continue to lead the company after the transaction closes as president and vice president of finance and treasurer, respectively.
Mount Logan’s acquisition of Ability combines two companies providing products and services that Mount Logan believes are and will continue to be in high demand: insurance solutions and asset management. The stronger capital base and alignment will enable Mount Logan to increase production of assets and liabilities for the benefit of Ability policyholders as well as Mount Logan and its shareholders.
Ted goldthorpe, CEO and Chairman of the Board of Mount Logan, said, âCompleting our transaction with Ability represents a monumental step in scaling up Mount Logan, expanding the asset management side of our business. business and diversification into insurance solutions. We look forward to continuing to grow our assets under management in the rapidly growing field of insurance, with a particular focus on annuity reinsurance. In addition, we are happy to welcome Anna elliot and David Charsky to the Mount Logan family. The transaction is beneficial to Ability policyholders, is highly strategic for Mount Logan and will serve as a platform for growth.
Mount Logan has acquired the ability to Advantage Capital Holdings, LLC (the âSellerâ), an insurance and financial business platform. A total of 1,579,671 Shares priced at CA $ 3.92 per Share, i.e. the weighted average price based on volumes over 20 days at 21 October 2021, were issued by Mount Logan in satisfaction of $ 5 million the equity consideration forming part of the purchase consideration. Mount Logan’s $ 10 million the investment in Ability at close was financed by a $ 8.5 million rely on an existing one $ 25 million corporate credit facility of a subsidiary of Mount Logan and existing liquidity on the balance sheet.
Separately, as part of the previously announced transaction of the Company concluded on July 1, 2021 where ML Management acquired certain assets from Capitala Investment Advisors, LLC (“CIA”) and became the investment advisor of Logan Ridge Finance Corporation (formerly Capitala Finance Corp.), Mount Logan issued approximately $ 4.0 million of shares to CIA in settlement of a portion of the deferred purchase price payable under the asset purchase agreement with CIA. A total of 1,258,931 shares priced at CA $ 3.93 per Share, i.e. the average price weighted according to the volume over 15 days at 21 October 2021, were issued to the CIA.
On Mont Logan Capital Inc.
Mont Logan Capital Inc. is an alternative asset management and insurance solutions company focused on public and private debt securities in the North American market and the reinsurance of annuity products. The Company seeks, assesses, underwrites, manages, monitors and invests primarily in loans, debt securities and other credit-oriented instruments that present attractive risk-adjusted returns and present a low risk of capital depreciation throughout. along the credit cycle.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements may be identified by the expressions “seeks”, “expects”, “believes”, “believes”, “will”, “target” and similar expressions. Forward-looking statements are not historical facts but reflect the Company’s current expectations regarding future results or events and are based on information currently available. Certain important factors and assumptions have been applied in providing these forward-looking statements. The forward-looking statements discussed in this press release include, without limitation, the benefits of the Transaction for the Company and its shareholders and the policyholders of Ability; the use by Company of Ability as a platform to develop its business; continued market demand for insurance solutions and asset management; Mount Logan’s ability to scale the creation of assets and liabilities after completion of the Transaction; Mount Logan’s plans to reduce Ability’s exposure to long-term care and to replace and grow assets by focusing the business on attractive annuity products; the retention of key members of Ability’s management after the closing of the Transaction; the business strategy, model, approach and future activities of the Company; composition and size of the portfolio; asset management activities and associated income; the capital raising activities, the Company’s future credit opportunities; realization of portfolios; and protecting stakeholder value and expanding the Company’s loan portfolio. All forward-looking statements contained in this press release are qualified by these cautionary statements. The Company believes that the expectations reflected in the forward-looking statements are based on reasonable assumptions; however, the Company cannot guarantee that actual results or developments will be achieved on certain specified dates or not at all. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including that Ability may not generate recurring asset management fees or benefit. strategically to the Company as planned; the synergies expected by combining the business of Mount Logan with the business of Ability may not be realized as expected; the risk that the Company will not successfully integrate the business of Ability without a significant use of the Company’s resources and management’s attention; the risk that Ability may require a significant investment of capital and other resources in order to develop and expand the business; the Company is not accustomed to operating an insurance solutions business and is subject to all of the risks and uncertainties associated with the expansion of the Company’s business and the matters discussed under the heading âRisk Factorsâ in the last annual information form and the management report filed and analysis for the Company. Therefore, readers should not place undue reliance on these forward-looking statements. In addition, a forward-looking statement is only valid as of the date on which such statement is made. The Company assumes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances, except as required by securities laws. These forward-looking statements are made as of the date of this press release.
This press release is not, and should not be construed as, a prospectus or advertisement and the communication of this press release is not, and should not be construed as, an offer to sell or an offer to buy securities of the Company or any fund or other investment vehicle.
For more information, contact:
Jason roosFinancial director
Mont Logan Capital Inc.
365, rue de la Baie, office 800
Toronto, Ontario M5H 2V1
Source: Mont Logan Capital Inc.