American Equity $125 million convertible talked at 5.125%-5.625% yield, up 45%-50%

Nashville, Nov. 29 - American Equity Investment Life Holding Co. launched $125 million of 20-year convertible notes talked to yield 5.125% to 5.625% with a 45% to 50% initial conversion premium late Monday.

Deutsche Bank Securities is sole bookrunner of the Rule 144A deal, which was slated to price after the market closes Thursday.

The senior unsecured notes will be non-callable for seven years, with puts in years seven, 10 and 15.

There is a 120% contingent conversion trigger and full dividend and takeover protection for holders.

A $50 million greenshoe is available.

West Des Moines, Iowa-based American Equity expects to contribute substantially all proceeds directly or indirectly to the capital and surplus of its life insurance subsidiaries to support future growth of its business.

American Equity shares closed up 25 cents Monday, or 2.44%, at $10.50. In after-hours trading, the stock was down 50 cents, or 4.76%, on the convertible news.

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