Private equity investor Warburg Pincus has been a shareholder in term life insurance underwriter Primerica (PRI -0.73%) since its IPO in 2010. However, the financial products marketer will be buying back all of the holdings Warburg Pincus owns for $154.7 million. That translates into almost 2.5 million shares of common stock and warrants that are exercisable for 4.1 million shares.
The purchase price was determined based on the closing price of Primerica common stock on May 28, and following the transaction, Warburg Pincus will no longer own any of Primerica's outstanding common stock.
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Primerica will purchase for $34.67 per share all of the stock beneficially owned by Warburg Pincus Private Equity X and Warburg Pincus X Partners. It will also pay $16.67 per underlying share for the warrants they hold.
In a press release dated Tuesday, Primerica Chairman and Co-CEO Rick Williams said: "Today's transaction marks the conclusion of Primerica's IPO era. Warburg Pincus has been a great partner and was vital in helping us become a strong public company. In three years, our Company has completed an exit from Citigroup, and, with today's acquisition of Warburg Pincus' stake, we become a 'fully' public company."
Morgan Stanley served as financial advisor to Primerica on the repurchase.
