AmerUs starts exchange for Oceans

New York, Nov. 16 - AmerUs Group Co. said it has begun an exchange offer for its $185 million of convertibles due 2032 in the Oceans structure in response to new accounting regulations.

On conversion, holders of the new securities will receive cash up to the principal amount and the remainder in common stock. The existing notes convert into stock only.

In addition, the new securities will have a conversion make-whole premium on a change of control up to March 6, 2007 unless the acquirer is a public company.

Otherwise, the terms of the new securities will be similar to the existing ones.

AmerUs, a Des Moines, Iowa, life insurance and annuity company, is offering an exchange fee of $2.50 per $1,000 principal amount to holders who participate.

It said that it is carrying out the offer in response to new accounting rules that will require it to treat the existing convertibles as if they were fully exchanged for stock when calculating diluted earnings per share.

The exchange expires at 9 a.m. ET on Dec. 15.

BNY Midwest Trust Co. is exchange agent, and Georgeson Shareholder is information agent (banks and brokers call 212 440-9800, others 866 873-6980).

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