New Issue: AmerUs upsized $200 million mandatory yields 6.25%, up 30%

By Ronda Fears

Nashville, May 22 - AmerUs Group Co. sold an upsized $200 million of 3.25-year mandatory convertibles at par of 25 to yield 6.25% with a 30% initial conversion premium via joint lead managers Merrill Lynch & Co. and Goldman Sachs & Co.

The issue, boosted from $125 million, priced at the middle of yield talk of 6.0% to 6.5% and at the aggressive end of premium guidance of 26% to 30%.

AmerUs will use proceeds to repay bank revolver borrowings and for general corporate purposes.

Terms of the deal are:

Issuer: AmerUs Group Co.

Issue:	Mandatory convertibles in the Prides structure
Joint lead managers:	Merrill Lynch & Co. and Goldman Sachs & Co.
Amount	$200 million, upped from $125 million
Greenshoe:	$18.75 million, upped from $15 million
Maturity:	Aug. 16, 2006
Coupon:	6.25%
Price:	Par, $25
Yield:	6.25%
Conversion premium:	30%
Conversion price:	$26.00/$33.80
Conversion ratio:	0.74/0.962
Call:	Non-callable
Expected ratings:	Moody's: Baa3
	S&P: BBB+
Pricing date:	May 21
Settlement:	May 28

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