MINNEAPOLIS, Sept. 19, 2016 (GLOBE NEWSWIRE) -- GWG Holdings, Inc. (Nasdaq:GWGH), a specialty finance company in the life insurance secondary market, 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. (“CSG”).
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.”
“Having a second institutional credit facility to support GWG’s business speaks to the quality of the life insurance portfolio we own,” said GWG Chief Financial Officer Bill Acheson. “With over $272 million in senior bank financing available to support our business, this transaction sends a strong signal that GWG has the financial tools and banking relationships to continue to lead the emerging life insurance secondary market.”
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 (firstname.lastname@example.org) and Brian Bailey (email@example.com). Phone: 469-467-5900. www.csginvestments.com.
About GWG Holdings, Inc.
GWG Holdings, Inc. (Nasdaq:GWGH) is a specialty finance company in the life insurance secondary market. GWG is dedicated to creating a vibrant life insurance secondary market for the economic benefit of seniors with life insurance who are seeking post-retirement financial solutions, investors seeking yield derived from non-correlated assets, financial advisors seeking value-added products and services for their clients, and shareholders seeking to gain from the realization of this marketplace. As of June 30, 2016, GWG’s growing portfolio consisted of over $1.1 billion in face value of policy benefits. Since 2006, GWG has purchased over $2 billion in life insurance policy benefits and paid seniors $357 million for their life insurance.
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Media Contacts: Rose Reifsnyder Senior Vice President, Marketing GWG Holdings, Inc. (612) 840-7204 firstname.lastname@example.org Matt Ehlers G&S Business Communications (919) 870-5718 email@example.com
Source:GWG Holdings, Inc.