By Andrea Heisinger
New York, Sept. 22 - American Financial Group, Inc. priced an upsized $132 million of 7% 40-year senior subordinated notes on Wednesday at par of $25 to yield 7%, an informed source said.
The deal size was increased from a planned $100 million. The number of notes was increased to 5.28 million from 4 million shares.
The notes (Baa2/BBB) priced at the tight end of talk for a yield in the area of 7.125%.
They are callable on or after Sept. 27, 2015 at par plus accrued interest.
Bank of America Merrill Lynch and Wells Fargo Securities were bookrunners.
Joint lead manager was J.P. Morgan Securities, and co-managers were KeyBanc Capital Markets, Huntington Investment Co., PNC Capital Markets LLC, Raymond James, RBC Capital Markets and U.S. Bancorp Investments.
Proceeds are going toward general corporate purposes.
The holding company for property and casualty insurance subsidiaries is based in Cincinnati, Ohio.
| Issuer: | American Financial Group, Inc.
|
| Issue: | Senior subordinated notes
|
| Amount: | $132 million (5.28 million notes), increased from $100 million (4 million notes)
|
| Maturity: | Sept. 30, 2050
|
| Bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities
|
| Joint lead manager: | J.P. Morgan Securities
|
| Co-managers: | KeyBanc Capital Markets, Huntington Investment Co., PNC Capital Markets LLC, Raymond James, RBC Capital Markets, U.S. Bancorp Investments
|
| Coupon: | 7%
|
| Price: | Par of $25
|
| Yield: | 7%
|
| Call: | On or after Sept. 27, 2015 at par plus accrued interest
|
| Trade date: | Sept. 22
|
| Settlement date: | Sept. 27
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | 7.125% area yield
|
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