By Stephanie N. Rotondo
Portland, Ore., Jan. 6 - Virtus Investment Partners Inc. said in a regulatory filing Tuesday that it had entered into a loan agreement with Phoenix Cos. Inc. as part of its spin-off from its former parent.
The new $20 million loan refinances an existing loan made to Virtus by Phoenix Life Insurance Co., a wholly-owned subsidiary of Phoenix Cos.
The loan comes in the form of a senior note carrying an interest of 6.55% until Jan. 16, when the rate increases to 9%. The debt matures on Dec. 31, 2010.
Virtus is required to make a principal payment of $1 million along with each interest payment on the last calendar day of each quarter of 2009. In 2010, the principal payment will increase to $4 million. Virtus also has the option to prepay at least $2 million each due date.
Virtus completed its spin-off from Phoenix on Dec. 31, 2008.
Virtus is a Hartford Conn.-based investment firm. Phoenix is a Hartford, Conn.-based insurance company.
| Issuer: | Virtus Investment Partners Inc.
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| Security description: | Senior note
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| Amount: | $20 million
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| Coupon: | 6.55% before Jan. 16, 2009, then 9%
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| Maturity: | Dec. 31, 2010
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| Distribution: | Private placement
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