American Equity posts mandatory redemption notice for 8% convertibles

By Tali David

Minneapolis, May 31 - American Equity Investment Life Holding Co. issued a notice of mandatory redemption for all of its 8% convertible junior subordinated notes due 2029, according to a press release.

American Equity Capital Trust I, the holder of all of the debentures, issued notices of mandatory redemption of all of its 8% convertible trust preferred securities and all of its 8% convertible trust common securities.

The redemption date is July 10.

Holders of the trust preferred securities have the right to convert their securities into shares of American Equity Investment Life Holding Co. common stock, par value $1 per share.

If all of the trust preferred securities holders exercise their conversion rights, American Equity would issue roughly 2.7 million shares of its common stock, the company said.

American Equity is a West Des Moines, Iowa-based insurance company.

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