GWG Secures Debtor-In-Possession Loan
GWG Holdings Inc. has secured a super-priority secured debtor-in-possession credit and guaranty agreement to provide funding for the company’s continued operations while in bankruptcy, according to a filing with the Securities and Exchange Commission.
As The DI Wire previously reported, GWG has had significant changes this year, ranging from its bankruptcy filing to multiple resignations of key leaders in the company. The company recently reported the appointment of a new CFO.
The agreement between GWG, its various affiliates, and multiple lenders provides for a revolving credit facility in an aggregate principal amount of up to $40 million and a term loan credit facility in an aggregate principal amount of approximately $564 million.
The obligors, administrative agent and collateral agent also entered into a debtor-in-possession security agreement related to the DIP Credit Agreement to pledge their assets as collateral to the lenders.
The maturity date of the DIP Credit Agreement is Oct. 15, 2023, and borrowings under the agreement bear interest at 9.22% per annum.
GWG Holdings is a financial services firm based in Dallas. Through its subsidiary, GWG Life LLC, GWGH owns and manages a portfolio of life insurance policies that, as of Sept. 30, 2021, included $1.8 billion in face value of life insurance policy benefits.
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