Published on 5/25/2017 in the Prospect News Investment Grade Daily.
New Issue: American Financial prices $350 million 4.5% 30-year notes at 160 bps over Treasuries
By Cristal Cody
Tupelo, Miss., May 25 – American Financial Group, Inc. sold $350 million of 4.5% 30-year senior notes on Thursday at 99.46 to yield 4.533%, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (Baa1/BBB+) priced with a spread of 160 basis points over Treasuries, on the tight side of guidance in the 165 bps area over Treasuries, plus or minus 5 bps.
J.P. Morgan Securities LLC, BofA Merrill Lynch and Wells Fargo Securities, LLC were the lead managers.
Proceeds will be used to redeem all of the company’s $230 million outstanding of 6.375% senior notes due June 2042, which become redeemable on June 12. The balance of proceeds will be used for general corporate purposes, which may include the redemption of all or a portion of the company’s $125 million outstanding of 5.75% senior notes due August 2042, which become redeemable on Aug. 25.
American Financial Group is a Cincinnati-based holding company for property and casualty insurance subsidiaries.
| Issuer: | American Financial Group, Inc.
|
| Amount: | $350 million
|
| Description: | Senior notes
|
| Maturity: | June 15, 2047
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch and Wells Fargo Securities, LLC
|
| Co-managers: | Barclays, MUFG, PNC Capital Markets LLC, BB&T Capital Markets, KeyBanc Capital Markets Inc., U.S. Bancorp Investments, Inc. and Huntington Investment Co.
|
| Coupon: | 4.5%
|
| Price: | 99.46
|
| Yield: | 4.533%
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | Make-whole call before Dec. 15, 2046 at greater of par or Treasuries plus 25 bps; thereafter at par
|
| Trade date: | May 25
|
| Settlement date: | June 2
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 165 bps area, plus or minus 5 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
