Insurer American Financial Group (AFG) has priced their new issue of subordinated notes. The SEC documents have not yet been filed so I will post further detail tomorrow morning.
The coupon will be 5.625%. The ticker will be AFGD. Standards and Poor’s rates the issue BBB- and Moody’s Baa2—both investment grade. They are selling 6 million shares.
Being debt this will not trade on the OTC grey market. Once the cusip is known investors can call their brokerage if they want it before exchange trading.
This issue has the potential for trading quite strongly – at least looking at the 5.875% issue that is currently outstanding and trading between $26 and $27 would seem to indicate potential to trade in the $25.50 to $26 area. I may have an interest at a fair price once exchange trading begins.