By Paul A. Harris
Portland, Ore., June 13 – American Equity Investment Life Holding Co. priced a $500 million issue of split-rated 5% 10-year senior notes (S&P: BBB-/Fitch: BB+/AM Best: bbb-) at a 280 basis points spread to Treasuries on Tuesday, according to a terms sheet posted with the Securities and Exchange Commission.
The spread came in line with initial spread talk of Treasuries plus the high 200 bps to 300 bps area, according to market sources, who added that the deal was transacted on the investment-grade desk.
J.P. Morgan Securities LLC and RBC Capital Markets LLC were the joint lead bookrunners. Citigroup Global Markets Inc. and SunTrust Robinson Humphrey Inc. were joint bookrunners.
The West Des Moines, Iowa-based insurance company plans to use the proceeds to redeem all of its 6 5/8% senior notes due 2021 and prepay in full its $100 million term loan that matures on Sept. 30, 2019.
| Issuer: | American Equity Investment Life Holding Co.
|
| Amount: | $500 million
|
| Maturity: | June 15, 2027
|
| Securities: | Senior notes
|
| Joint lead bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets LLC
|
| Joint bookrunners: | SunTrust Robinson Humphrey Inc., Citigroup Global Markets Inc.
|
| Coupon: | 5%
|
| Price: | 99.93
|
| Yield: | 5.009%
|
| Spread: | 280 bps
|
| Call: | Treasuries plus 45 bps until March 15, 2027, then callable at par, otherwise non-callable
|
| Trade date: | June 13
|
| Settlement date: | June 16
|
| Ratings: | S&P: BBB-
|
| Fitch: BB+
|
| AM Best: bbb-
|
| Distribution: | SEC registration
|
| Guidance: | High 200 bps to 300 bps
|
| Format: | Investment-grade execution
|
© 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.
