North America Legal Receivables Senior Secured Loan Token

Overview

The Firm specializes in high value personal injury cases with expertise in wildfires, wrongful deaths, asbestos/mesothelioma claims, dangerous drugs, defective medical devices, medical malpractice, whistleblower claims, and car accidents.

The Firm is seeking to raise a $140.0 million senior secured term loan (“Term Loan”) to refinance existing debt and provide growth capital for new case acquisition. $105.0 million is expected to be funded at close, with $35.0 million subject to a delayed draw mechanism.

The Firm’s current portfolio of cases and corresponding fee interests comprises more than 14,000 claims across numerous mass tort litigations (“Portfolio”). The Portfolio includes both post-settlement cases that are currently generating fee revenue and pre-settlement cases that have been recently aggregated by the Firm and/or are procedurally less advanced. In total, the Firm’s collateral is estimated to represent approximately $175.0 million of value, which implies an attractive LTV relative to the proposed $105.0 million initial funded amount.

The Term Loan is priced at SOFR + 10.50% with a 5.0% SOFR floor. Available cash will be used to pay monthly interest. If there is not sufficient cash, interest will be paid in-kind and capitalized to the Term Loan principal balance.