Two Retirement Insurers Invest $245 Million in Bonds Backed by LeBron James' Nike Deal
Jackson Financial (JXN) and Apollo Global Management's Athene division are among insurers that have invested a combined $245 million into bonds backed by LeBron James’s lifetime sponsorship deal with Nike. The investment, arranged through an LLC named King James Funding in two tranches—$300 million issued in 2018 at a 4.8% coupon and another $60 million in August 2022 priced at 5.75%—is set to mature by 2049. This move reflects an industry trend where insurers are increasingly turning to private credit, asset-backed finance, and unique deals like these to fund long-term annuity obligations. Jackson Financial reported a significant rise in retail annuity sales last quarter, while Apollo’s Athene saw record earnings from its spread-related products. These investments aim to generate higher yields than traditional corporate bonds or Treasuries. From an investor perspective, the tax implications of non-qualified annuities remain complex: gains are taxed as ordinary income at up to 37%, with no step-up in basis for heirs and a potential early withdrawal penalty.
Topics: annuities asset-backed bonds LeBron James Nike sponsorship private credit