The Duluth Ga.-based distributor of financial products will repurchase 5,736,137 shares of Primerica common stock owned by the private equity growth investor. The purchase price of $26.15 per share was derived from the closing price of Primerica common stock on April 17, 2012.
At the conclusion of the transaction, Warburg will own 17.9% of Primerica’s outstanding common stock on a primary basis and 23.2% including the warrants to purchase Primerica common stock currently held by Warburg Pincus.
Primerica hopes that the deployment of $150 million of excess capital will be another crucial step in creating shareholder value. The repurchase is the final act in a series of actions that were announced with a recent redundant reserve financing transaction.
“We are pleased to support Primerica in this unique opportunity to deploy the proceeds of its recent excess reserve financing in a shareholder friendly and efficient manner. We continue to view the company as a long-term investment and strongly believe in management’s and the sales force’s ability to continue to generate shareholder value as they build their one-of-a-kind financial services franchise,” said Michael Martin, Managing Director and Head of Warburg Pincus’ financial services group.