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GWG Announces DTC Eligibility for L Bond Offering

GWG Holdings, Inc. (NASDAQ: GWGH), a sponsor of non-traded life settlement investment programs, has closed the sale of its three- and five-year publicly registered L bonds through the Depository Trust Company. DTC manages electronic clearing and settlement for corporate and municipal securities.

“The ability to close L bonds through DTC accomplishes a strategic goal of GWG and marks another milestone for the company as we celebrate our 10-year anniversary,” said GWG chief executive officer Jon Sabes. “GWG’s L bond offering is our primary financing tool in our portfolio growth strategy and DTC adds another feature to an already attractive, high-yield, non-correlated, fixed-income offering.”

As reported by The DI Wire last month, the company recently closed the sale of its short-term L bond debt with maturities of one year or less, and also released new rates for its L bond offering. The company will continue to sell the 2-, 3-, 5-, and 7-year L bonds.

GWG announced the $1 billion L bond offering in January 2015, and raised more than $30 million in the first quarter of 2016 and nearly $40 million in the second quarter.

GWG Holdings is a specialty finance company in the life insurance secondary market. As of June 30, 2016, the company’s portfolio consisted of more than $1.1 billion in face value of policy benefits. Since 2006, GWG has purchased more than $2 billion in life insurance policy benefits and paid seniors $357 million for their life insurance.

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