GWG extends $100 million loans with DZ Bank; pricing up by 400 bps

By Susanna Moon

Chicago, Feb. 1 - GWG Holdings, Inc. renewed its $100 million credit facility with DZ Bank AG Deutsche Zentral-Genossenschaftsbank, extending the maturity to Dec. 31, 2014.

The company amended its credit agreement on Tuesday with Autobahn Funding Co. LLC as the conduit lender and DZ Bank as the committed lender and as the agent, according to an 8-K filing with the Securities and Exchange Commission.

The annualized cost of borrowing under the amended terms will be about 400 basis points more than the rate under the original credit terms, the filing noted.

In addition, the amended agreement also requires the company to maintain a reserve for certain projected expenditures that increases to an amount equal to 12 months of the expenditures beginning as of Sept. 1, 2013 from an initial amount equal to six months of the expenditures.

"The renewal of the credit facility is an important part of our diversified funding strategy and supports GWG's growing life insurance finance business," GWG's chief executive officer Jon Sabes said in a company press release.

GWG is Minneapolis-based company engaged in the secondary market for life insurance.

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