American Equity to exchange shares, cash for 5.25% convertibles

By Angela McDaniels

Tacoma, Wash., Dec. 20 - American Equity Investment Life Holding Co. will issue shares of common stock and pay cash in exchange for 5.25% contingent convertible senior notes due 2029 under a privately negotiated exchange agreement reached on Dec. 18, according to an 8-K filing with the Securities and Exchange Commission.

The amount of convertibles to be exchanged was not disclosed in the SEC filing.

The actual number of shares to be issued under the exchange agreement will be based on the volume-weighted average price of the company's common stock during an agreed-upon exchange period beginning Jan. 2.

The company expects the number of shares to be issued to be more than 1% but less than 2% of the number of its shares outstanding. The actual number of shares issued will be reported following settlement.

The company said it may tender for, redeem or repurchase additional outstanding convertibles.

In addition to the 5.25% convertibles, which have a call date in December 2014, the company has 3.5% convertible senior notes due September 2015.

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

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