Discover Renewable Secured Debentures
GWG Holdings, Inc. (“GWG”), through its subsidiaries, specializes in purchasing life insurance policies in the secondary market. Life insurance policies purchased in the secondary market fall into the broad category of alternative assets because they are not found in traditional investment portfolios. GWG offers investors the opportunity to bring diversification to their portfolios by investing in its publicly registered non-traded, offering – Renewable Secured Debentures – corporate debentures of GWG Holdings, Inc.
GWG, through its subsidiaries, purchases life insurance policies from seniors who no longer want or need their life insurance at discounts to the policy’s face value benefit. GWG’s objective is to acquire life insurance policies in the secondary market that generate returns greater than the costs necessary to purchase and finance those policies to their respective maturity.
GWG’s Renewable Secured Debentures provide an investment opportunity whose underlying asset performance is not linked to traditional equity, real estate, or commodity markets. The goal of GWG is to provide Renewable Secured Debenture investors fixed terms and yields derived from a unique and growing asset class. The current offering and yields offered by GWG’s Renewable Secured Debentures is set forth below:
CURRENT OFFERING: $250,000,000
To learn more about GWG’s current offering, including the risks associated with an investment, please click here and read the Prospectus. An investment in the debentures involves significant risks, related to the business of GWG, which are described in the Prospectus. These risks include the potential loss of principal invested. The debentures are not bank certificates of deposit. The debentures are not guaranteed or insured by the FDIC or any other entity. The debentures are not suitable for all investors. The debentures are illiquid due to significant transfer restrictions and the lack of a secondary market. The debentures are subordinate to senior debt.
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.