GWG Holdings, Inc. (Nasdaq: GWGH), a financial services holding
company committed to transforming the alternative asset industry
through innovative liquidity products and related services for the
owners of illiquid alternative investments, expressed its
confidence in the strength of the company’s portfolio of
investments that support the L Bonds and Redeemable Preferred Stock
it has sold to investors across the U.S. for more than 10 years.
As COVID-19 continues to impact everyday life, GWGH and its
subsidiary, The Beneficient Company Group, L.P. (Ben), are
prioritizing the continuity of their operations, the health and
safety of their employees, and their commitment to their business
partners and investors.
“While public markets have been increasingly volatile, we
believe our L Bonds and Redeemable Preferred Stock continue to be a
valuable addition to an investor portfolio, particularly in the
current economic climate,” said GWGH Chief Executive Officer Murray
Holland. “Our L Bonds and Redeemable Preferred Stock are not
publicly traded, so investors aren’t exposed to daily volatility in
the price of their investment, and they are structured to provide
regular, fixed interest or dividend payments, as well as repayment
of principal upon maturity for L Bonds, or the investor’s original
investment returned upon redemption of the Redeemable Preferred
Stock.”
As of September 30, 2019, the date of the last 10-Q filed by
GWGH with the SEC, GWG Life, a wholly-owned subsidiary of GWGH,
owned a $2.06 billion face value portfolio of life insurance
policies. Life settlement mortality performance is not correlated
to public or private market performance or any other asset. The GWG
Life portfolio of 1,174 policies represented insured individuals
who had an average age of 82 years and contained policies of 84
high-quality insurance carriers with over 95.8 percent of the
face value of benefits issued by insurers having an
investment-grade rating (BBB or better) by Standard &
Poor’s.
The Beneficient Company Group, L.P. (Ben) loan portfolio
diversification may help to provide stability to the portfolio
during current market conditions.
As of September 30, 2019, Ben’s loan portfolio had exposure to
124 professionally managed alternative investment funds, comprised
of 390 underlying investments. And, approximately 97 percent of
Ben’s loan was backed by investments in private companies. Ben’s
loan portfolio diversification spans across many industry sectors
(see attached graphic):
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/8da8217d-e210-4380-8688-3d1c6fcceb2a
Ben’s loan portfolio had little exposure to companies in the
leisure, travel or gaming industries or firms engaged in oil and
gas exploration, production, storage and transportation. Also,
healthcare investments – both in Healthcare Equipment &
Services, and Pharma, Biotech & Life Sciences – represented
approximately 50 percent of the Ben loan portfolio. Given a
health-related crisis such as the COVID-19 pandemic, some of these
companies may see increased demand for their products and services
as a result of this crisis.
It is important to note, however, we cannot give any assurances
that the consequences of this crisis will not adversely affect the
value of Ben’s loan portfolio, particularly given the rapidly
changing nature of the crisis, the companies and industries most
impacted, and related governmental responses.
“While the impact of a long-term significant global market
downturn on our company and portfolio is somewhat unpredictable, we
believe our portfolio of life insurance policies in conjunction
with Ben’s diversified loan portfolio positions us to withstand
periods of volatility and negative performance in the stock and
bond markets,” said Brad Heppner, the GWGH and Ben Chairman of the
Board and Ben’s Chief Executive Officer.
GWGH plans to release its financial and
operating results for the full-year and fourth quarter of 2019
later this month and will host a webcast/conference call to discuss
those results following the release.
Forward-Looking Statements
Certain matters discussed in this release
contain forward-looking statements. These forward-looking
statements reflect our current expectations and projections about
future events and are subject to risks, uncertainties and
assumptions about our operations and the investments we make,
including, among other things, factors discussed under the heading
“Risk Factors” in our filings with the SEC.
The words “believe,” “could,” “possibly,”
“probably,” “anticipate,” “estimate,” “project,” “expect,” “may,”
“will,” “should,” “seek,” “intend,” “plan,” “expect,” or “consider”
and similar expressions are intended to identify forward-looking
statements but are not the exclusive means of identifying such
statements. Forward-looking statements are subject to risks and
uncertainties, which could cause actual results to differ
materially from such statements. Such risks and uncertainties
include, but are not limited to, the valuation of assets reflected
on our financial statements, including the fair value of Ben’s
assets and liabilities which were consolidated as a result of the
transactions with Ben on December 31, 2019, and the other factors
described in the Risk Factors sections of our SEC reports.
About GWG Holdings,
Inc.
GWG Holdings, Inc.
(Nasdaq: GWGH), a financial services holding
company committed to transforming the alternative asset industry
through innovative liquidity products and related services for the
owners of illiquid alternative investments, is the parent company
of GWG Life which owns a portfolio of
$2.06 billion in face value of life insurance policy benefits as of
September 30, 2019. GWGH has executed a series of strategic
transactions with The Beneficient Company Group,
L.P., a financial services company providing proprietary
liquidity solutions to owners of alternative assets, resulting in
the closer alignment of the two companies.
For more information about GWG Holdings,
email info@gwgh.com or visit www.gwgh.com.
Media Contact:Dan
CallahanDirector of CommunicationGWG Holdings, Inc.(612)
787-5744dcallahan@gwgh.com
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