GWG Closes Second Senior Bank Credit Facility

GWG Holdings, Inc. (NASDAQ: GWGH), a sponsor of non-traded life settlement investment programs, announced that its special purpose subsidiary, GWG DLP Funding IV, LLC, has entered into a $172 million, 10-year credit facility originated by CSG Investments, Inc.

The new 10-year senior credit facility, in addition to its existing $100 million senior credit facility provided by DZ Bank AG Deutsche Zentral-Genossenschaftsbank (DZ Bank), supports GWG’s ability to purchase and finance life insurance assets acquired in the secondary market. Proceeds from the new credit facility are expected to be used to reduce debt outstanding with DZ Bank, reduce other short term debt, and to purchase life insurance assets.

In anticipation of closing this long term credit facility, GWG recently announced a reduction in interest rates and discontinued sale of short term debt in its L Bond offering. In addition, GWG announced that its L Bond offering is now available for purchase through the Depository Trust Company (DTC).

“This second, longer-term credit facility is an important step in executing our buy and hold strategy with respect to our portfolio of life insurance assets,” said GWG chief executive officer Jon Sabes. “Establishing this new institutional banking relationship to support our business is a proud moment in GWG’s history.”

GWG Holdings is a specialty finance company in the life insurance secondary market. As of June 30, 2016, the company’s portfolio consisted of more than $1.1 billion in face value of policy benefits. Since 2006, GWG has purchased more than $2 billion in life insurance policy benefits and paid seniors $357 million for their life insurance.

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