American Financial notes remain convertible through fourth quarter

By Devika Patel

Knoxville, Tenn., Oct. 11 - American Financial Group, Inc. said that holders of its senior convertible notes may convert the securities through Dec. 31.

The conversion opportunity continues from the last quarter because the closing price of the company's stock was more than 120% of the accreted conversion price for at least 20 of the last 30 trading days of the last quarter, closing at $28.52 on Sept. 28, according to the company's news release. The average closing sale price during September was $28.31 per share, the release said.

The notes are convertible into 17.2524 common shares, which equals a conversion price of $25.84 per share.

As allowed under the note indenture, the company plans to pay cash instead of shares for converted notes. The amount of cash to be paid will equal 17.2524 times the average closing sale price of the common stock for the five consecutive trading days following the conversion date for each holder.

American Financial is a Cincinnati-based property and casualty insurer.

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