Independent Bank Corporation (Nasdaq: IBCP), a Michigan-based bank holding company (“IBC” or the “Company”), reported that its subsidiary, Mepco Insurance Premium Financing, Inc. (“Mepco”), has closed the transaction to sell substantially all of its assets related to the insurance premium finance business to Premium Financing Specialists, Inc. (“PFS”). Mepco will continue to own and operate its warranty payment plan business.
Colonnade Advisors LLC initiated this transaction and served as exclusive advisor to PFS.
Under the terms of an amended definitive agreement, Mepco and its wholly-owned subsidiary, Mepco Acceptance Corp. (“MAC”), sold approximately $180 million of insurance premium finance loans, net and certain other assets within its insurance premium finance business to PFS. PFS also assumed certain liabilities totaling approximately $12 million associated with Mepco’s and MAC’s insurance premium finance business (primarily the obligation for premium finance loans that are not yet funded at the sale date). In addition, PFS paid Mepco a premium of $8 million. Mepco, MAC and Independent Bank (Mepco’s parent company) also agreed not to compete in the insurance premium finance business for a period of five years.