American Equity Investment Life greenshoe exercised, raising convertibles to $250 million

By Caroline Salls

Pittsburgh, Dec. 3 - American Equity Investment Life Holding Co. said the underwriters of its recent offering of 5.25% contingent convertible senior notes due 2024 exercised the $75 million over-allotment option in full, raising the size of the deal to $250 million.

The West Des Moines, Iowa, full-service annuity and insurance underwriter originally priced $175 million of the securities on Nov. 30 to yield 5.25% with a 47.5% initial conversion premium.

Deutsche Bank Securities was the bookrunner for the Rule 144A deal.

The company expects to use proceeds to increase the capital and surplus of its life insurance subsidiaries to support future growth of its business.

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