American Financial notes remain convertible through second quarter

By Angela McDaniels

Seattle, April 4 - American Financial Group, Inc. said that holders of its senior convertible notes will continue to be able to convert the notes through June 30.

The notes remain convertible 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 first quarter, according to a company news release.

The notes are convertible into 17.2524 common shares, which reflects the 3-for-2 stock split performed by the company on Dec. 15 and equals a conversion price of $25.84 per share.

American Financial's stock closed at $34.41 (NYSE: AFG) on Monday.

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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