QUOTE AND NEWS
Forbes  Sep 11  Comment 
As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money.  So let's look at two noteworthy recent insider buys.
SeekingAlpha  Jul 31  Comment 
Imperial Holdings, Inc. (NYSE:IFT) Q2 2014 Earnings Conference Call July 30, 2014 5:00 PM ET Executives David Sasso – Director of Investor Relations Antony Mitchell – Chief Executive Officer Richard S. O'Connell – Chief...
SeekingAlpha  Mar 27  Comment 
By Markus Aarnio: Imperial Holdings (IFT) operates as a specialty finance company in the United States. (click to enlarge) Insider buying during the last 30 days Here is a table of Imperial Holdings' insider activity during the last 30...
Forbes  Mar 17  Comment 
Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they...
SeekingAlpha  Mar 11  Comment 
Imperial Holdings, Inc. (IFT) Q4 2013 Earnings Conference Call March 10, 2014 17:00 ET Executives David Sasso - Director, Investor Relations Tony Mitchell - Chief Executive Officer Rory O’Connell - Chief Financial Officer ...
Financial Times  Mar 9  Comment 
IFT ruling could give the green light for telecoms billionaire to participate in tenders for two new TV channels, the first to be auctioned in the country’s history
DailyFinance  Feb 12  Comment 
Imperial Holdings, Inc. (NYSE: IFT) (“Imperial”) announced today the pricing of $70,000,000 aggregate principal amount of 8.50% Senior Unsecured Convertible Notes Due 2019 (the “Notes”), which are anticipated to be...




 
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Imperial Holdings (NYSE:IFT) is a specialty finance firm that originates loans that are collateralized by life insurance policies. They make money from in the interest charged on loans, on fees from originating the loan, and from fees from referring agents. Imperial Holdings historically took on debt to finance its business. However, the 2008 Financial Crisis significantly increased the interest rate on this debt and so the financing costs of operating rose. Imperial Holdings went public with the intention of using the IPO proceeds to finance operations.[1]

Imperial Holding plans to alter its pre-IPO business plan and refocus. First, it plans to eliminate the use of debt financing to fund its premium operations. The company expects that by relying on debt financing it can improve margins substantially. Next, Imperial plans to eliminate its use of lender protection insurance. This insurance was necessary pre-IPO due to the debt financing, but without the insurance, Imperial save money and be able to originate more loans since the insurance coverage had limits. Finally, Imperial hopes to expand its structure settlement business. A structured settlement consists of an exchange were the recipient of a deferred payment stream sells this stream in return for an single, upfront, lump sum payment. In other words, rather than receive a series of payments spread across into the future, a client of Imperial can exchange this payment stream for a single lump sum. Because it is paid upfront, Imperial pays its client a discounted sum.[2]

The company's initial public offering of stock on the NYSE occurred on February 7, 2011. The company offered 16.7M shares each for $10.75. This was just below the midpoint of the revised range of $10-$12. This brought the final deal to $179M. The deal was originally planned to price in the $14-$16 range which would have made the deal worth $250M. The lead underwriter of the IPO was FBR Capital Markets Corp (FBCM).[3].

For the full year 2009, Imperial's total revenue was $97M. For the first 9 months of 2010, this total revenue was $60M. Imperial reported a net loss however for 2009 of $8.6M. The first 9 months of 2010 also ended with a net loss of $16.4M. These net losses were caused by a significant rise in the interest expense paid by Imperial. From 2007 to 2008, it increased from $1.3M to $12.8M. From 2008 to 2009, it increased again to $33.8M.[4]

References

  1. IFT S-1/A 2011 PROSPECTUS SUMMARY "Overview" pg 1
  2. IFT S-1/A 2011 PROSPECTUS SUMMARY "Strategy" pg 2
  3. Renaissance Capital - IPO Home "Imperial Holdings prices IPO at $10.75, within its revised range" 7 Feb 2011
  4. [http://www.sec.gov/Archives/edgar/data/1494448/000095012311009470/w7883110sv1za.htm IFT S-1/A 2011 PROSPECTUS SUMMARY "Summary Historical and Unaudited Pro Forma Consolidated and Combined Financial and Operating Data" pg 9]
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