Abacus Life Announces Pricing of $25 Million Public Offering
Abacus Life (NASDAQ: ABL; ABLLL), a leading market maker and asset manager in the life insurance sector, has announced the pricing of its public offering of $25 million in additional 9.875% notes due in 2028. This new issuance, which is expected to close on February 15, 2024, will be treated as a single series with the existing notes issued last November, bringing the total outstanding notes to $60.65 million.
The underwriters for this offering, including Piper Sandler & Co., A.G.P./Alliance Global Partners, and Ladenburg Thalmann & Co. Inc., have the option to purchase up to an additional $3.75 million in notes to cover any overallotments.
The proceeds from this offering will be used to refinance existing debt and for general corporate purposes. Abacus Life, which specializes in longevity and actuarial technology, plans to list the new notes on the Nasdaq Global Market under the symbol “ABLLL,” the same as the existing notes.
Founded in 2004, Abacus Life has gained recognition for its role in purchasing life insurance policies and managing them through various strategies. The company maintains an A+ rating as a BBB Accredited Business, highlighting its outstanding reputation and commitment to excellence. Moreover, with over $4.6 billion in face value of policies purchased, Abacus Life has established a substantial presence in the industry and has built a network of institutional partners and financial advisors across 49 states.
InvestingPro data reveals that Abacus Life currently enjoys a robust market capitalization of $729.94 million USD, proving investor confidence and the company’s strong market presence. Furthermore, Abacus Life has demonstrated impressive revenue growth of 92.2% over the past twelve months as of Q1 2023, reflecting the company’s financial strength. This growth is also supported by a significant gross profit margin of 87.45%, indicating efficient management and a solid business model. Additionally, Abacus Life has exhibited a substantial return on assets of 13.23%, showcasing its ability to generate earnings from its asset base.
In terms of liquidity, Abacus Life’s liquid assets currently surpass its short-term obligations, leading to financial stability and the ability to meet immediate financial needs. Investors looking for market momentum can take note of Abacus Life’s strong return over the last three months, with a 69.25% price total return.
Overall, Abacus Life’s recent public offering and its strong financial trajectory highlight the company’s potential and solidifies its position as a key player in the life insurance sector.
Analyst comment
Positive news: Abacus Life (NASDAQ: ABL; ABLLL) has announced the pricing of its public offering of $25 million in additional 9.875% notes due in 2028. This will be used to refinance debt and for general corporate purposes. The company’s strong financial trajectory, robust market capitalization, impressive revenue growth, and solid business model position it as a key player in the life insurance sector. Market is expected to respond positively to this news.
