New Issue: American Equity sells upsized $175 million convertible to yield 5.25%, up 47.5%

Nashville, Dec. 1 - American Equity Investment Life Holding Co. sold an upsized $175 million of 20-year convertible senior unsecured notes at par to yield 5.25% with a 47.5% initial conversion premium via sole bookrunner Deutsche Bank Securities.

The issue, boosted from $125 million, also was advanced to price two days early and was sold at the cheaper end of coupon guidance of 5.125% to 5.625% and at the middle of premium talk of 45% to 50%.

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.

Terms of the deal are:

Issuer:	American Equity Investment Life Holding Co.
Issue:	Convertible senior unsecured notes
Bookrunner:	Deutsche Bank Securities
Co-managers:	Advest Inc. and Raymond James
Amount:	$175 million, up from $125 million
Greenshoe:	$75 million, up from $50 million
Maturity:	Dec. 6, 2024
Coupon:	5.25%
Price:	Par
Yield:	5.25%
Conversion premium:	47.5%
Conversion price:	$14.47
Conversion ratio:	69.1085
Contingent conversion:	120%
Contingent payment:	120%
Net share settlement:	Yes
Dividend protection:	Yes
Takeover protection:	Yes
Call:	Non-callable for 7 years
Put:	In years 7, 10 and 15
Price talk:	5.125-5.625%, up 45-50%
Pricing date:	Nov. 30, advanced from Dec. 2
Settlement date:	Dec. 6
Distribution:	Rule 144A

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