GWG Holdings, the parent company of life insurance company GWG Life, increased its senior credit facility from $172 million to $300 million to cover premium payments over the next decade.

The 10-year revolving senior credit facility, originated by CSG Investments, amends the company’s existing facility to create the capacity to finance the future premium payments on substantially all of the life insurance assets in the company’s portfolio today.

“This amendment is another significant step forward in executing our buy-and-holding strategy with respect to our portfolio of life insurance assets,” said GWG Holdings CEO Jon Sabes. “Securing long-term, committed financing for the payment of premiums on the portfolio greatly reduces the risk of not realizing the face value of the portfolio benefits, thereby creating significant value for our shareholders over the long term.”

In conjunction with the amended senior facility, GWG Holdings terminated its credit facility with DZ Bank and redeemed its outstanding series I secured notes and series A preferred stock.

“These developments represent significant milestones in our continuing quest to build a large, high-quality balance sheet of well-financed life insurance assets,” said GWGH CFO William Acheson. “The amended facility improves our funding profile and the redemption of the series A preferred stock eliminates potential dilution to our common stockholders.”

Dallas-based CSG Investments provides capital solutions for all types of commercial and industrial customers.