Specialty finance firm Imperial Holdings has announced that wholly-owned unit Washington Square Financial (WSF) entered into a forward purchase and sale agreement to directly sell up to $40 million of life contingent structured settlement receivables to Compass Settlements.
Compass is a subsidiary of Beacon Annuity Fund, which served as the financing counterparty under Imperial's existing life contingent structured settlement receivables facility.
Under the terms of the said agreement, Compass will commit, in $5.0 million increments, to purchase life contingent structured settlement receivables that WSF will exclusively sell to Compass for a term of twenty-four months.
Under this arrangement, Imperial's existing life contingent structured settlement facility with Beacon has terminated.
“We are very pleased to have re-established our relationship with Beacon," said Antony Mitchell, chairman and CEO of Imperial. "This new, mutually beneficial agreement will allow us to begin to sell part of our structured settlement receivables immediately, thereby allowing us to enhance our cash flow and continue to service our valuable customer base.”