By Andrea Heisinger
New York, June 10 - American Financial Group, Inc. priced an upsized $350 million 9.875% 10-year senior notes Wednesday at par, an informed source said.
The size was increased from $300 million.
The notes priced at the tight end of guidance, which was in the 9.875% to 10% area, he said.
The notes (Baa2/BBB/) priced with a spread of Treasuries plus 592.1 basis points. There is a make-whole call of Treasuries plus 75 bps.
Bookrunners were Banc of America Securities LLC, J.P. Morgan Securities Inc. and Wachovia Capital Markets LLC.
Co-managers were KeyBanc Capital Markets Inc., Fox-Pitt Kelton Cochran Caronia Waller, Raymond James, PNC Capital Markets and U.S. Bancorp Investments.
Proceeds will be used to repay a portion of a bank line of credit.
The holding company for property and casualty insurance is based in Cincinnati.
| Issuer: | American Financial Group, Inc.
|
| Issue: | Senior notes
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | June 15, 2019
|
| Bookrunners: | Banc of America Securities LLC, J.P. Morgan Securities Inc., Wachovia Capital Markets LLC
|
| Co-managers: | KeyBanc Capital Markets Inc., Fox-Pitt Kelton Cochran Caronia Waller, Raymond James, PNC Capital Markets, U.S. Bancorp Investments
|
| Coupon: | 9.875%
|
| Price: | Par
|
| Yield: | 9.875%
|
| Spread: | Treasuries plus 592.1 bps
|
| Call: | Make-whole at Treasuries plus 75 bps
|
| Trade date: | June 10
|
| Settlement date: | June 17
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | 9.875% to 10% area
|
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