May 10, 201209:33 AMDaily Biz Briefs
North Coast Life reaches deal with GPM Life
North Coast Life Insurance Co. has executed a definitive agreement with Government Personnel Mutual Life Insurance Co. in which GPM Life will purchase 763,017 authorized but unissued shares of common stock of the Spokane-based company for $7.66 per share – and a surplus debenture in the principal amount of $469,115.
North Coast Life will use the proceeds to redeem the 360,791 outstanding shares of its Series A preferred stock. Following the redemption, and subject to the approval of the holders of North Coast Life’s common stock, a newly created Washington subsidiary of GPM Life will be merged with and into North Coast Life, with the result that North Coast Life will then become a wholly owned subsidiary of GPM Life.
The transactions, which are expected to be completed during the second or third quarter of 2012, are subject to approval by the Office of the Washington Insurance Commissioner.
GPM Life is a mutual life insurance company headquartered in San Antonio.