American Equity Investment to price series A fixed-rate reset non-cumulative preferred shares

By Cristal Cody

Tupelo, Miss., Nov. 12 – American Equity Investment Life Holding Co. marketed a registered offering of $25-par depositary shares on Tuesday, according to a 424B5 filing with the Securities and Exchange Commission.

The shares each represent 1/1,000th of an interest in a share of series A perpetual fixed-rate reset non-cumulative preferred stock.

Dividends will accrue from the issue date to but excluding Dec. 1, 2024 at a fixed rate and will be reset thereafter.

Morgan Stanley & Co. LLC, BofA Securities, Inc., Wells Fargo Securities LLC and RBC Capital Markets, LLC are the bookrunners.

The deal includes a 30-day over-allotment option to purchase additional shares.

The preferreds are redeemable on or after Dec. 1, 2024 at par plus declared and unpaid dividends.

American Equity Investment plans to apply to list the depositary shares on the New York Stock Exchange under the symbol “AELPrA.”

Proceeds from the offering will be used to redeem outstanding subordinated debentures and for general corporate purposes.

West Des Moines, Iowa-based American Equity Investment issues fixed index and fixed-rate annuities.

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