GWG Holdings Increases Long-Term Credit Facility to $300 Million
September 29 2017 - 8:30AM
GWG Holdings, Inc. (Nasdaq:GWGH), the parent company of GWG Life, a
financial services company committed to transforming the life
insurance industry through disruptive and innovative products and
services, increased its senior credit facility from $172 million to
$300 million to cover premium payments over the next decade.
The 10-year revolving senior credit facility, originated by CSG
Investments, Inc., amends the company’s existing facility to create
the capacity to finance the future premium payments on
substantially all of the life insurance assets in the company’s
portfolio today.
“This amendment is another significant step forward in executing
our buy-and-holding strategy with respect to our portfolio of life
insurance assets,” said GWG Holdings Chief Executive Officer Jon
Sabes. “Securing long-term, committed financing for the payment of
premiums on the portfolio greatly reduces the risk of not realizing
the face value of the portfolio benefits, thereby creating
significant value for our shareholders over the long term.”
In conjunction with the amended senior facility, GWG Holdings
terminated its credit facility with DZ Bank and redeemed its
outstanding Series I Secured Notes and Series A Preferred
Stock.
“These developments represent significant milestones in our
continuing quest to build a large, high-quality balance sheet of
well-financed life insurance assets,” said GWGH Chief Financial
Officer William Acheson. “The amended facility improves our funding
profile and the redemption of the Series A Preferred Stock
eliminates potential dilution to our common stockholders.”
About CSG Investments, Inc.
CSG Investments, Inc., headquartered in Dallas, Texas, provides
flexible and creative capital solutions for all types of commercial
and industrial customers. CSG is a direct, one-stop source of
capital for up to $550 million per transaction. Contacts: Steve
Harvey (sharvey@csginvestments.com) and Brian Bailey
(bbailey@csginvestments.com). Phone:
469-467-5900. www.csginvestments.com.
About GWG Holdings, Inc.
GWG Holdings, Inc. (Nasdaq:GWGH) the parent
company of GWG Life, is a financial services company committed to
transforming the life insurance industry through disruptive and
innovative products and services. The company has developed a new
suite of options for the life insurance secondary market called
LifeCare Xchange. The LifeCare Xchange provides seniors with the
exchange value of their life insurance policies they can apply
towards long-term care and other retirement financial needs. GWG
Holdings seeks to further transform the industry by applying
proprietary M-Panel epigenetic technology to innovate traditional
life insurance underwriting practices. Since 2006 GWG Life has
provided seniors over $436 million in exchange value for their life
insurance and, as of June 30, 2017, owned a portfolio of $1.53
billion in face value of policy benefits.
For more information about GWG Holdings,
email info@gwglife.com or visit www.gwgh.com.
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Statements
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involve substantial risks and uncertainties. All statements, other
than statements of historical facts, included in this press release
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results is contained in our filings with the Securities and
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Media Contact:
Dan CallahanDirector of CommunicationGWG Holdings, Inc.(612)
746-1935dcallahan@gwglife.com
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