American Equity Investment Life Holding Company (AEL) has announced a new $25 preferred issue.
This is another Fixed-Rate Reset issue, which means it will have an initial fixed rate until 12/1/2024 at which time the company can optionally redeem the issue–or reset the coupon based upon the 5 year treasury plus a “spread”.
There after as long as the issue is outstanding the coupon will be reset every 5 years at the 5 year treasury plus the “spread).
The issue will be non-cumulative, but should be qualifed. The permanent ticker will be AEL-A once trading begins on the NYSE.
The issue will trade on the OTC Grey market, but the temporary ticker has not been announced yet.
The preliminary prospectus can be read here.
Insurance rating agency AM Best had previously rated the company and you can read a previous press release here.
I find no credit ratings from Moodys, Fitch or S&P.
I am not familiar with the company–but could have an interest. When I don’t recognize a company I do extra deep digging to avoid surprising ‘history’.
As usual mcg was right on top of this announcement with SteveA tracking down some ratings.