American Equity Investment Life Announces Preferred Pricing-Corrected

Insurer/annuity company American Equity Investment Life (AEL) has priced the previously announced preferred issue.

The fixed-rate reset preferred will carry an initial 5.95% coupon until 12/1/2024. At this point it will reset to the 5 year treasury plus a spread of 4.322%. On each 5 year anniversary it will reset again.

The issue is rated BB (just below investment grade) by both S&P and Fitch.

This is the companies 1st preferred, but they can be compared to Athene (ATH) a very similar company. The Athene issues can be seen here.

The pricing term sheet can be found here.

Jerry had the spread on this one pegged a couple hours ago.

11 thoughts on “American Equity Investment Life Announces Preferred Pricing-Corrected”

  1. This climbed to $26. On late Friday afternoon a hour before close, it feel back to $25.30 range. It has been at about $25.35 all day with heavy volume. I purchased a full position

  2. I bought a small position at the open. Their payout ratio is very low. Might be safer than we think. ATB

      1. Steve, your link was from July, and he just presided over the quarterly conference call less than a week ago. So certainly nothing nefarious on his part or he would have been shoved out by now. So it appears he just feels like its time and will stay on indefinitely until a suitable replacement is found. He probably will still be CEO by the time I am gone, ha.

        1. My view of the world. Most will probably disagree. At this point, the current CEO should be focused on decisions that have short term impacts. Things that a successor could decide should wait until they are hired. They seem to be entering the preferred marketplace for the 1st time. If this was preferred issue C, I would not question it at all. It’s a standard way the company was running for years. A new way that has a 5-year impact that the new CEO has to live with? When his retirement was announced in July the board expected to name a replacement by 12-31. What’s the rush?

          Is this enough to stop me from investing? No, I would have done a 1/4
          position at the right price and still will if the price falls another 0.10 a share.

  3. If I am very lucky, I might make enough to buy a McDonald’s cheeseburger. Only 100 shares at $25.42. Have orders in at this price and below. The way it looks now they will not be executed. Not gonna chase a BB grade.

    1. Steve, my goal is to not be in this long enough to test the safety, lol… First exD at tops and Im out the door!

  4. Anybody go to the well on this one? The ol Gunslinger came out of retirement for one last battle with this one, AQYVL. Didnt have a chance at issue price, and got in at $25.40

    1. Did buy 200 shares only, but need the QDI in my cash managment account and it is hard to find. You guys bought on the cheap. I had to pay 25.50 which is my MAXIMUM. But got enough time to get paid.

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