Obra Capital Completes Super Priority Secured Debtor-In-Possession Credit and Security Agreement with GWG Holdings, Inc.
NEW YORK, December 20, 2022 — Obra Capital, Inc. (“Obra”), a portfolio company of RedBird Capital Partners and Reverence Capital Partners, today announced that it completed a super priority secured Debtor-In-Possession credit and security agreement with GWG Holdings, Inc. On April 20, 2022, GWG Holdings, Inc. a financial services firm based in Dallas, Texas, and certain of its subsidiaries filed a voluntary Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas as part of a restructuring process intended to enable the Company to enhance its liquidity and ability to meet its financial obligations.
Obra, through Vida Insurance Credit Opportunity Fund III, LP and its related affiliates, agreed to provide a term loan credit facility in an initial aggregate principal amount of approximately $564 million and a revolving credit facility in an aggregate principal amount of up to $40 million.
Blair Wallace, President & Chief Executive Officer of Obra Capital, said, “Our loan to GWG, secured by all assets of the debtors including GWG's life settlements portfolio and the equity interests of subsidiaries, was the culmination of an eight-month process during which Obra explored multiple structuring solutions to benefit both GWG stakeholders and our limited partners.”
Added Wallace, “In connection with the transaction, Obra deployed proprietary underwriting and analytics, leveraging our deep experience in life settlements and insurance linked special situations. This is the firm’s largest transaction in its twelve-year history and we look forward to continuing to deploy capital in other situations where Obra has a significant edge in supporting counterparties and driving returns for our investors.”
As part of the agreement, GWG has agreed that Obra’s wholly owned subsidiary, Magna Servicing LLC, will provide servicing for the GWG portfolio of life settlement assets. With this new servicing assignment, Magna expects to service over $10 billion of life insurance policies for Obra and third-party investors.
Advisors
Quinn Emanuel Urquhart & Sullivan LLP, and Proskauer Rose LLP acted as legal counsel to Obra and Moelis & Company LLC acted as Obra’s financial advisor.
About Obra Capital
Obra Capital, Inc. is an investment firm specializing in insurance special situations, structured credit, asset-based finance, and longevity with $3.9 billion in assets under management. The firm aims to generate long-term value and attractive returns for investors across closed-end and open-end funds. With capabilities in investing, originating, structuring, and servicing, Obra provides differentiated investment opportunities and capital solutions for investors globally. For more information about Obra, please visit www.obra.com.
Media Contact:
Dan Gagnier
Gagnier Communications
Obra@gagnierfc.com
646-569-5897