The US Bankruptcy Court gave an order to GWG Holdings, Inc. to obtain DIP financing on a final basis on December 01, 2022. As per the order, the debtor has been authorized to obtain a replacement revolving credit facility in the amount of $40 million and replacement term loan facility of $590 million from VICOF III Acquisition, LLC where Vida Insurance Credit Opportunity Fund III GP, LLC acting as the administrative agent. The DIP loan would either carry an interest rate adjustment the greater of f (a) 0.00% per annum and (b) (i) the 5-year SOFR swap rate as published by ICE on the Closing Date minus (ii) 2.75% per annum; provided that in no event shall the Interest Rate Adjustment exceed 0.50% per annum, whereas LTV adjustment for any portion for any portion of the DIP Loans for which the LTV is less than 50%, 6.75% per annum, (b) for any portion of the DIP Loans for which the LTV is less than 60% but greater than or equal to 50%, 8.00% per annum , (c) for any portion of the DIP Loans for which the LTV is less than 70% but greater than or equal to 60%, 10.00% per annum, (d) for any portion of the DIP Loans for which the LTV is less than 80% but greater than or equal to 70%, 13.00% per annum and (e) for any portion of the DIP Loans for which the LTV is greater than or equal to 80%, 15.00% per annum.

The DIP facility would mature either on October 15, 2023 or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral.