Accessing Yield From an Alternative Asset Class.
Renewable Secured Debentures are publicly registered corporate debt offered at varied interest rates and maturities by GWG Holdings, Inc. (“GWG”). Renewable Secured Debentures are secured by the assets of GWG, which consist primarily of cash and its investment in its direct subsidiaries. Obligations under the debentures will also be guaranteed by GWG Life Settlements, LLC, a direct wholly owned subsidiary of GWG, and a pledge by that company of collateral security in all of its assets. Materially all of our life insurance policy assets are held in our subsidiary GWG DLP Funding II, LLC, a direct subsidiary of GWG Life Settlements. The policies held by GWG DLP Funding II serve as collateral to GWG’s senior lender (see below, “What Backs the Renewable Secured Debentures?”), and will not be collateral for obligations under the debentures. Nevertheless, the guarantee and collateral provided by GWG Life Settlements will include that company’s ownership interest in GWG DLP Funding II.
The assets of GWG and its subsidiaries that serve as collateral security for the obligations under the Renewable Secured Debentures (and related guarantee) will be structurally subordinate to the security interest in favor of the senior lender under DLP Funding II’s revolving credit facility. This means that the senior lender will be entitled to full payment of all amounts owed to it prior to the GWG being able to access insurance policies held by GWG DLP Funding II or the proceeds derived from such policies.
The portfolio section of our website contains the details of the life insurance policies owned by GWG. The portfolio of life insurance policies have been purchased at a discount to the face value of the insurance policy benefits. These policies are purchased from seniors who no longer need or can afford their life insurance policies, or otherwise seek to maximize their investment in their life insurance policy.
GWG utilizes actuarial and financial models to calculate a projected financial return on its portfolio that will enable it to satisfy GWG’s financial obligations, including the Renewable Secured Debentures. The financial returns GWG earns on its portfolio of life insurance policies is subject to risk and speculation – please read the Risk Factors in our Prospectus.
GWG maintains relationship with global banking partners, and uses the services of leading financial institutions for custodial and trustee services.
The goal of GWG is to provide investors competitive fixed yields from a unique asset class.
Selling commissions range from 0.50% to 5.00% of the principal amount of debentures sold, depending on the debentures' maturity dates. GWG pays Arque Capital additional underwriting compensation ranging from 2.00% to 3.00% of the principal amount of debentures sold depending on the debentures' maturity dates. Such additional underwriting compensation consists of a dealer manager fee, a wholesaling fee (payable only to wholesaling dealers), and an accountable and non-accountable expense allowance. Arque Capital will share its commissions and non-accountable expense allowance with other dealers who may participate in the offering. The total amount of the selling commissions and additional underwriting compensation paid to Arque Capital and any other FINRA member in the course of offering and selling the debentures will not exceed 8.00% of the aggregate amount of the debentures sold.
An investment in Renewable Secured Debentures may be considered speculative and subject to a high degree of risk, including the risk of losing your entire investment. The information provided herein does not constitute an offer to buy securities or the solicitation of an offer to sell securities. Renewable Secured Debentures are not available in the following states: AL, AK, AR, MD, NC, OH, OK, PA, TN, TX. Elevated suitability restrictions apply in the following states: AZ, IA, ID, KS, KY, MA, ME, NE, NM, ND, NJ, OR, SC, WA. An offer to sell securities can only be made by a Prospectus, pursuant to a registration statement, and any amendments thereto, then effective and on file with the Securities and Exchange Commission ("SEC"). Investors must read the entire Prospectus for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to the Renewable Secured Debentures in order to obtain the information essential to making an informed investment decision. Risks may include, but are not limited to, GWG’s limited operating history, lack of liquidity or a secondary market, continued low interest rates, subordination to senior debt, actuarial experience, among other factors. The secondary market for life insurance policies is new and relatively unproven. Changes to the actuarial assumptions or development of the secondary market for life insurance policies may have an adverse effect on Renewable Secured Debentures, resulting in a potential loss of principal. Similarly, the deterioration of credit quality of life insurance carriers may cause the inability for a carrier to make a payment on the underlying life insurance policies which would have an adverse impact on Renewable Secured Debentures. Certain restrictions apply to this investment including, but not limited to, geographic availability, investor suitability, redemptions prior to maturity and assignment prohibitions. No dealer, broker, salesperson, or other person has been authorized by GWG to give any information or to make any representation other than as contained in the Prospectus, and, if given or made, such other information or representations must not be relied upon as having been authorized by GWG. No statement found herein is incorporated by reference into the Prospectus, and no statement herein constitutes any part of the Prospectus. GWG is under no obligation to update any information included herein. The information and expressions of opinions are subject to change without notice and speak only as of the respective dates in which they are made.
Investment Decisions. This information is not intended to replace any information or consultation provided by a financial advisor or other professional. The information provided herein does not constitute a recommendation for the purchase or sale of any security or other financial instrument or to adopt an investment strategy.
Cautionary Statement Regarding Forward-Looking Statements: Certain matters discussed on this website may be forward-looking statements. We have based these forward-looking statements on our current expectations, assumptions and projections about future events using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements are subject to risks, uncertainties and assumptions about our operations and the investments we make, including, among other things, factors discussed in our filings with the Securities and Exchange Commission and the following: changes in the secondary market for life insurance; our limited operating history; the valuation of assets reflected on our financial statements; the reliability of assumptions underlying our actuarial models; our reliance on debt financing; risks relating to the validity and enforceability of the life insurance policies we purchase; our reliance on information provided and obtained by third parties; federal and state regulatory matters; additional expenses, not reflected in our operating history, related to being a public reporting company; competition in the secondary life insurance market; the relative illiquidity of life insurance policies; life insurance company credit exposure; economic outlook; performance of our investments in life insurance policies; financing requirements; litigation risks; and restrictive covenants contained in borrowing agreements. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained in this website.
Securities are being offered on a best efforts basis on behalf of GWG Holdings, Inc., by Arque Capital, Ltd., member FINRA/SIPC, dealer manager for the offering of Renewable Secured Debentures. GWG Holdings, Inc., and Arque Capital, Ltd., are not affiliated entities.
Issuer Prepared Material. Copyright 2013. GWG Holdings, Inc. All Rights Reserved.