MINNEAPOLIS, Sept. 29, 2017 (GLOBE NEWSWIRE) -- 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 (email@example.com) and Brian Bailey (firstname.lastname@example.org). 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 email@example.com or visit www.gwgh.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "would," "target" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about our estimates regarding future revenue and financial performance. We may not actually achieve the expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the expectations disclosed in the forward-looking statements we make. More information about potential factors that could affect our business and financial results is contained in our filings with the Securities and Exchange Commission. Additional information will also be set forth in our future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. We do not intend, and undertake no duty, to release publicly any updates or revisions to any forward-looking statements contained herein.
Director of Communication
GWG Holdings, Inc.
GWG Holdings, Inc.