American Equity Investment talks $500 million 10-year senior notes at high 200-300 bps area

By Paul A. Harris

Portland, Ore., June 13 – American Equity Investment Life Holding Co. plans to price a $500 million offering of 10-year senior notes on Tuesday, according to market sources.

The deal, which is being transacted on the investment-grade desk, is being guided in the high 200 basis points to 300 bps area, according to sources, who add that the offer is expected to garner at least one investment-grade rating.

The deal size will not grow, a trader said.

J.P. Morgan Securities LLC and RBC Capital Markets LLC are the joint lead bookrunning managers for the public offering. Citigroup Global Markets Inc. and SunTrust Robinson Humphrey Inc. are joint bookrunning managers.

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.

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