Lighthouse Life Capital, LLC, a vertically integrated provider of life policies and life policy services, announced the launch of its Lighthouse Life Beacon Bonds offering. The company is offering up to $50 million in beacon bonds pursuant to Regulation D, Rule 506(c) under the Securities Act of 1933, as amended. The offering is available to accredited investors through participating independent broker-dealers and registered investment advisers with a minimum investment of $10,000.
Lighthouse stated that the five-year Class C and CR beacon bonds are expected to provide annual interest yields of 11.0% and 11.5% for fee-based transactions, respectively, with monthly payments to investors. The three-year Class D and DR beacon bonds are expected to provide annual yields of 9.0% and 9.5% for fee-based transactions, respectively, with monthly distributions.
In addition to the fixed interest payments on the beacon bonds, the company stated that bondholders will also receive a contingent value right, or CVR, issued by LHL Strategies, Inc., the parent company of Lighthouse Life. According to Lighthouse, CVRs offer bondholders the opportunity for additional returns from participation in LHL Strategies’ growth, amounting to a maximum additional return of 10% for Class C/CR investors and 5% for Class D/DR investors.
“Lighthouse Life is positioned at the intersection of a growing supply of life insurance policies and a sustained and growing demand for these non-correlated life policies by institutional asset investors,” said Michael Freedman, CEO of Lighthouse Life and LHL Strategies. “Beacon Bonds plus CVR gives accredited investors access to an income and growth offering backed by a business that is vertically integrated, rapidly expanding, and delivering solutions at every stage of the policy lifecycle.”
Lighthouse Life said that it intends to use the proceeds from the beacon bonds to support the continued growth and expansion of its core business of originating, acquiring, and reselling life insurance policies to third-party investors; to continue Lighthouse Life’s ongoing expansion of strategic businesses related to life settlements; and for working capital and general corporate purposes.
The launch of its latest offering follows closely on Lighthouse’s recent announcement that its parent company, Lighthouse Life Strategies, Inc., acquired Harbor Life Settlements, the life settlement market’s leading search engine optimization lead generation brand.
Lighthouse Life Capital, LLC originates and acquires life insurance policies in the highly regulated life settlement market for resale to third-party investors and provides life policy services to asset investors. Lighthouse Life aims to deliver value to seniors and investors through fast, efficient, and transparent life settlement transactions.
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