Published on 12/5/2022 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Athene sells $500 million $25-par 7.75% non-cumulative preferreds
By Wendy Van Sickle
Columbus, Ohio, Dec. 5 – Athene Holding Ltd. priced a $500 million offering of $25-par series E fixed-rate reset perpetual non-cumulative preference shares (Baa3/BBB/BBB) with a dividend of 7.75% on Monday, according to an FWP filing with the Securities and Exchange Commission.
The dividend rate for the preferreds will reset on five-year intervals starting Dec. 30, 2027.
The preference shares may be redeemed early at the company’s option, in whole or in part, on or after the first reset date at par. Prior to that, the preferreds are redeemable at the company’s option at par after a change in tax law or capital disqualification event, at 102 within 90 days after a rating agency event or at 104 prior to a voting event.
Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the joint bookrunners.
Lead managers were Apollo Global Securities, LLC, Barclays, BMO Capital Markets Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC.
Proceeds will be used for general corporate purposes, including capital contributions to insurance subsidiaries to support organic growth.
Athene is a Bermuda-based retirement services provider.
| Issuer: | Athene Holding Ltd.
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| Amount: | $500 million, 20 million shares
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| Greenshoe: | None
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| Issue: | Series E fixed-rate reset perpetual non-cumulative preference shares
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| Maturity: | Perpetual
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| Bookrunners: | Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC
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| Joint lead managers: | Apollo Global Securities, LLC, Barclays, BMO Capital Markets Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC
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| Trustee: | U.S. Bank NA
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| Counsel to issuer: | Conyers Dill and Pearman and Sidley Austin LLP
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| Counsel to underwriters: | Fried, Frank, Harris, Shriver & Jacobson LLP
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| Dividend: | 7.75% initially, resets on five-year intervals starting Dec. 30, 2027
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| Price: | Par of $25.00
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| Yield: | 7.75%
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| Call: | On or after Dec. 30, 2027 at par; prior to that, at par after a change in tax law or capital disqualification event, at 102 within 90 days after a rating agency event or at 104 prior to a voting event
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| Pricing date: | Dec. 5
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| Settlement date: | Dec. 12
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| Listing: | NYSE: ATHPrE
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| Cusip: | 04686J507
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