Lighthouse Life Capital LLC, a U.S. life settlement company, announced that the U.S. Securities and Exchange Commission has qualified its $50 million Regulation A+ corporate bond offering. The offering, known as the Lighthouse Life Senior Beacon Bonds, is open to accredited and non-accredited investors.
Lighthouse Life Capital is offering two series of the Beacon Bonds, priced at $1,000 each and provide fixed monthly interest payments. Class A Bonds bear interest at an annual rate of 8.5 percent and mature on the fifth anniversary of their issuance. Class B Bonds bear interest at an annual rate of 6.5 percent and mature on the third anniversary of their issuance.
“Lighthouse Life is positioned as a growth company in an underutilized and inefficient life settlement market. We plan to significantly expand our marketing and advertising to the millions of seniors – and to a range of financial professionals – who don’t realize that it makes good financial sense to sell a life insurance policy that is otherwise going to be dropped,” said Michael Freedman, the company’s co-founder and chief executive officer. “Lighthouse Life generates income for those who sell us their policies and receive a market value in return, as well as for investors who receive monthly interest from investing in our Beacon Bonds.”
Lighthouse Life sources and purchases life insurance policies through the regulated life settlement market. The firm’s business model is to generate most of its revenue from the fees it receives for its services and from profits from the sale of the policies it acquires and resells to institutional investors. The company said that it “generates revenue within weeks or months from receiving a qualified policy for purchase.”
Clir Capital LLC is marketing the Beacon Bonds, and International Assets Advisory LLC serves as the managing broker-dealer for the offering. Kaplan Voekler Cunningham & Frank acts as counsel.
Lighthouse Life is a holding company that does business through its two subsidiaries, Lighthouse Life Solutions and Lighthouse Life Direct.