Insurer American Financial Group to Sell New Baby Bond

Insurer American Financial Group (AFG) will be selling a new issue of subordinated debentures.

The company currently has 3 other issues outstanding which can be seen here.

The company will have the right to defer interest payments for up to 5 consecutive years with a default occurring.

The new debentures should be rated low investment grade.

The new issue will trade under ticker AFGD when they hit the exchange in the next week or so.

The issue will not trade on the OTC grey market, but investors may be able to call their broker and buy early via the CUSIP (not yet known).

The preliminary prospectus can be found here.

Thanks to mcg for the instant heads up.

4 thoughts on “Insurer American Financial Group to Sell New Baby Bond”

  1. Not going near this one. Low interest rates not good for the various segments of their business, too much stock controlled by one family and don’t love the ability to suspend the dividend in this business. (among other reasons)

  2. Is this the company that used to be run by Hank Greenberg years ago??? If so, didn’t they have a serious problem of some sort back in the 2007-2009 crisis??? I’m probably getting my companies confused as many companies have very similar names. Tim, whats your opinion of this company??? Lots of companies lately issuing new paper and many names that Iam not familiar with. Been investing now for over 45+ years so when I see names I’ve never heard of it kinda makes me wonder??? I still remain very “skeptical” of this market and the huge run up over the last 8 weeks. Its like if the market has lost its memory.

    1. I think Hank Greenberg was with the AIG debacle…

      I’ve been happy with our American Financial Group holdings over the years. As for this issue, pricing will be key.

      1. Thank You Jay; In reading thru their latest quarterly report they said they have $610 Million in excess capital as of the report. Doesn’t seem like alot of money to me but thats just my humble opinion. They lost $3.34 per share in their most recent quarterly report. I’ll most likely take a pass on this one.

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