New York, Dec. 31 - American Equity Investment Life Holding Co. said Thursday it priced a $10 million add-on to its 20-year convertible senior unsecured notes on terms "substantially identical" to the original offering.
West Des Moines, Iowa-based American Equity will use proceeds to increase the capital and surplus of its life insurance subsidiaries to support future growth of its business.
The original $175 million of the convertibles was priced after the close on Nov. 30 after being upsized from $125 million. The greenshoe was subsequently exercised, raising the deal to $250 million.
The original notes priced at par to yield 5.25% with a 47.5% initial conversion premium via sole bookrunner Deutsche Bank Securities.
Terms of the original 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
|
| Greenshoe: | $75 million (now exercised)
|
| 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
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 6
|
| Distribution: | Rule 144A
|
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