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CSG Investments Provides $172MM Credit Facility to GWG Holdings

September 20, 2016, 07:41 AM
Filed Under: Insurance Services

GWG Holdings, Inc., 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, ten-year credit facility originated by CSG Investments, Inc.

The new ten-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.”

CSG Investments, Inc., headquartered in Dallas, TX, 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.

GWG Holdings, Inc. (GWGH) is a specialty finance company in the life insurance secondary market.

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