This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

American Financial Group, Inc. Announces The Pricing Of $200 Million Aggregate Principal Amount Of Senior Notes

American Financial Group, Inc. (NYSE/NASDAQ: AFG) announced today the sale of $200 million aggregate principal amount of 6⅜% Senior Notes due June 12, 2042. The Company has granted the underwriters a 30-day option to purchase up to an additional $30 million aggregate principal amount of Senior Notes. The Senior Notes are redeemable on or after June 12, 2017, at 100% of their principal amount plus accrued and unpaid interest to the redemption date.

AFG intends to apply for listing of the Senior Notes on The New York Stock Exchange. If approved, we expect trading in the Senior Notes to begin within 30 days of issuance. The net proceeds from the offering, together with cash on hand, will be used to redeem $112.5 million aggregate principal amount of 7½% Senior Notes due November 2033 and $86.25 million aggregate principal amount of 7¼% Senior Notes due January 2034, issued by one of our subsidiaries and guaranteed by us and another of our subsidiaries, in each case plus accrued and unpaid interest thereon to the date of redemption. If the underwriters exercise their option to purchase additional Senior Notes, any net proceeds from such exercise will be used either to redeem in part our 7⅛% Senior Debentures due 2034, plus accrued and unpaid interest thereon to the date of redemption, of which $115 million aggregate principal amount is outstanding, or for general working capital purposes. Due to notice requirements for the redemptions, there will be a period of several weeks (including the June 30, 2012 quarter end) when both the new Senior Notes and notes to be redeemed are outstanding.

This press release does not constitute an offer for sale of any securities. The Senior Notes may be offered only by means of a Prospectus Supplement and accompanying base Prospectus. Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC and Wells Fargo Securities, LLC acted as joint book-running managers for the offering. A copy of the Prospectus Supplement and accompanying base Prospectus relating to the offering may be obtained from:

  • Merrill Lynch, Pierce, Fenner & Smith Incorporated, at One Bryant Park, New York, NY 10036, toll free number: 1-800-294-1322;
  • UBS Securities LLC at 299 Park Avenue, New York, NY 10171, Attn: Prospectus Specialist, toll free number: 1-877-827-6444, ext. 561 3884;
  • Wells Fargo Securities, LLC at 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, Attn: Capital Markets Client Support, toll free number: 1-800-326-5897.

Alternatively, the base prospectus and prospectus supplement may be obtained by visiting AFG's EDGAR filings on AFG’s website, or by clicking here.

About American Financial Group, Inc.

American Financial Group is an insurance holding company based in Cincinnati, Ohio with assets in excess of $35 billion. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed and indexed annuities and a variety of supplemental insurance products such as Medicare supplement (In May 2012, the Company reached a definitive agreement to sell its core supplemental insurance operations to Cigna Corporation; the transaction is expected to close in the third quarter of 2012). Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs