The L Bond Opportunity
$2,000,000,000 Offering

INVESTMENT OBJECTIVE

Income with defined liquidity term1

Features

  • $25,000 minimum investment
  • May ladder different terms with minimum $10,000 per bond
  • Terms ranging from 2 to 7 years
  • Interest rates from 5.5% to 8.5%1
  • Monthly interest payments1

Redemption features

  • Auto renewals2

1 There is no guarantee our investment objective will be achieved.
2 At term and rate currently effective. Investor may choose to opt out of the renewal

2 Years 5.50%
3 Years 6.25%
5 Years 7.50%
7 Years 8.50%

Interest rates effective June 3, 2020. Not all terms may be available. Please check with your financial professional. L Bonds pay interest monthly.

Investing in L Bonds may be considered speculative and subject to a high degree of risk, including the risk of losing the entire investment.

History of GWG Securities

GWG has never missed an interest, dividend or maturity payment.* More than $2.25 billion raised since 2009.

Debt

  • 2009

    LifeNotes

  • 2011

    Renewable Secured Debentures

  • 2014

    L Bond

  • 2017

    L Bond (2nd Offering)

  • 2020

    Liquidity Bond

  • 2020

    L Bond (3rd Offering)

Equity

  • 2011

    Series A Preferred

  • 2014

    Public Company IPO Nasdaq: GWGH

  • 2015

    Redeemable Preferred Stock

  • 2017

    Series 2 Redeemable Preferred Stock

  • Public

  • Private

RISK CONSIDERATIONS

Investing in life insurance assets in the secondary market is a relatively new and evolving market. The success of GWGH’s business and its ability to satisfy its debt obligations, including L Bonds, depends in part on the continued development of the secondary market for life insurance, including the accuracy of actuarial forecasting, the solvency of life insurance companies to pay the face value of the life insurance benefits and the demand for life insurance investments. Material changes in the secondary market for life insurance policies may have an adverse impact on the company’s ability to satisfy its obligations.
Changes in state or federal laws and regulations governing the company's business, or changes to the interpretation of such laws and regulations, could materially or negatively affect its business.
The valuation of the portfolio of life insurance assets requires management to make material assumptions that may ultimately prove to be incorrect. These assumptions include discount rates, cash flow projections, and the life expectancy estimates, any of which may ultimately prove to be inaccurate.
In addition to cash flow from operations and amounts advanced under the senior credit facility, GWGH relies on continued access to proceeds from debt financing, such as the L Bonds, to acquire alternative assets, such as our investments in Ben, and to pay our operating expenses, including life insurance premiums, interest and principal on our outstanding debt and debt securities and other standard business operations. Continued access to such financing, however, is not guaranteed and even if financing proceeds remain available to the company, such proceeds, when added to available cash from operations, may not be sufficient to pay our expenses, or to make required payments on our debt obligations, including the L Bonds.
If GWGH becomes unable to issue and sell additional L Bonds to finance its investments in Ben and maintain its portfolio of life insurance policies, the company’s ability to pay interest to L Bond investors and repay the principal of L Bonds at maturity could be adversely affected. Upon maturity, there is an automatic renewal of L Bonds unless investors elect repayment.
If a significant number of holders of L Bonds and Seller Trust L Bonds demand repayment of those instruments upon maturity instead of renewing them, and at such time GWGH does not have sufficient capital on hand to fund those repayments (and does not otherwise have access to sufficient capital), it may be forced to liquidate some of its life insurance policies or other assets, which could have a material and adverse impact on its results of operation and financial condition.
GWG Life is a lender to Ben and certain trusts established as part of the alternative financings extended by Ben. These loans are unsecured and the loans to the trusts are subject to intercreditor agreements that limit GWG Life’s ability to enforce its rights under the related loan agreements. These facts present a risk to investors that the security granted by GWG Life for obligations under the L Bonds may be insufficient to repay the L Bonds.
The Prospectus provides a comprehensive listing of risks. A summary of those risks include, but are not limited to: a continued need to access financing, changes in economic environments including interest rates, the fact that L Bonds are subordinate to senior debt of GWG Holdings including any senior credit facility and other factors. Investments in L Bonds shall be considered illiquid until their stated maturity.

Important Information

L Bonds may be called and redeemed at any time without penalty or premium.
Life insurance assets will not be collateral for obligations under the L Bonds.
L Bonds are secured by the assets of GWGH and by a guarantee and corresponding grant of a security interest in substantially all the assets of GWG Life, LLC. GWGH’s assets consist primarily of our investments in company subsidiaries, cash (including proceeds the company receives from life insurance assets of its subsidiaries), and GWGH’s investment in The Beneficient Company Group, L.P. and together with its subsidiaries (Ben) and certain trusts established as part of the alternative financings extended by Ben. GWG Life’s assets include its equity in its subsidiary GWG DLP Funding IV, LLC (DLP IV) and its beneficial interest in GWG Life Trust (Life Trust). However the life insurance policies held by DLP IV and Life Trust, which comprise a substantial majority of the life insurance policies GWGH holds, do not serve as collateral for the L Bonds. The policies held by DLP IV are pledged as direct collateral securing a senior credit facility with LNV Corporation, a subsidiary of Beal Bank. The assets of GWG Life, including proceeds it receives as distributions from DLP IV and Life Trust and derived from the insurance policies owned by DLP IV and Life Trust, are collateral for GWG Life’s guarantee of the repayment of principal and interest on the L Bonds. The L Bonds are also secured by a pledge of 3,952,155 shares of GWGH common stock owned by Beneficient Capital Company L.L.C. and AltiVerse Capital Markets, L.L.C.