AmerUs defers $250 million preferred deal, cites market conditions

By Paul A. Harris

St. Louis, June 29 - AmerUs Group Co. plans to defer its $250 million offering of series A non-cumulative perpetual preferred stock (Ba2//BB+), the company said in a news release Wednesday.

"On the advice of its underwriters, the company determined that market conditions are not currently optimal for completion of the proposed offering on terms in line with its criteria," the company added in the release. "Since the company does not have any current need for the liquidity or capital, it is deferring the offering until later in the year.

"The deferral of the offering does not impact the company's previously announced board authorization to repurchase up to 6 million shares of common stock."

Lehman Brothers was leading the Rule 144A offering.

Proceeds were earmarked to repay $100 million drawn under the company's credit facility, which was used to refinance a portion of its 6.95% senior notes due 2005, to repurchase its common stock subject to market conditions and for general corporate purposes.

AmerUs is a Des Moines, Iowa, producer of life insurance and annuity products.

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