GWG extends credit and security agreement to 2018, lowers pricing

By Tali Rackner

Norfolk, Va., May 13 – GWG Holdings, Inc. amended its credit and security agreement on Monday to extend the maturity of borrowings made by subsidiaries GWG DLP Funding II, LLC and GWG DLP Funding III, LLC to June 30, 2018, according to an 8-K filing with the Securities ad Exchange Commission.

The company amended its credit agreement on Monday with Autobahn Funding Co. LLC as the conduit lender and DZ Bank AG Deutsche Zentral-Genossenschaftsbank as the committed lender and as the agent.

Advances made after Monday will bear interest at the commercial paper rate of the lender at the time of the advance, or at the lender’s cost of borrowing plus 425 basis points, which is 175 bps less than under the previous agreement executed on Jan. 25, 2013.

In addition, the May 11 amendment removes the requirement that the company maintain a reserve for certain projected expenditures, thereby allowing for GWG Holdings’ full use of the credit facility up to its limit of $105 million.

GWG is a life insurance company based in Minneapolis.

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