Insurance company American Financial Group (NYSE:AFG) has priced a new investment grade baby bond with a fixed rate coupon of 5.875%.
The issue is rated Baa2 by Moodys and BBB- by Standard and Poors.
The issue will trade with the permanent ticker symbol of AFGB when it begins to trade in the next week or so. The issue will not trade on the OTC Grey market.
The terms are normal baby bond terms with quarterly interest payments which will not be qualified for preferential tax rates. The issue will have an early optional redemption period starting 3/30/2024 and will have a maturity date of 3/30/2059.
The issue will be composed of 5 million shares (bonds).