Abacus Settlements (d/b/a Abacus Life) and Longevity Market Assets, a buyer of life insurance policies and vertically integrated alternative asset manager specializing in specialty insurance products, plan to merge with East Resources Acquisition. The combined company would have an estimated post-transaction enterprise value of $618 million, assuming no redemptions by the SPAC’s public stockholders.
Abacus is in the life settlements business, buying life insurance policies typically at a 20% discount.
East Resources is led by billionaire Terry Pegula, owner of the Buffalo Bills NFL team as well as the National Hockey League’s Buffalo Sabres. In 2010, he sold assets of East Resources to Royal Dutch Shell for $4.7 billion. In 2014, he was the majority owner of assets sold by HG Energy to American Energy Partners for $1.75 billion.
If approved, upon closing Abacus Life is expected to list on the Nasdaq under new ticker symbol ABAL.
Cash proceeds from the transaction will consist of up to $98 million of cash held in East Resources’ trust account (less any redemptions and payment of expenses), plus any additional cash raised via a private placement.
Aviditi Advisors is serving as exclusive strategic and financial advisor to ERES, and Latham & Watkins is legal counsel to the SPAC. Locke Lord is Abacus’ legal counsel. Read more.
