American Equity Prices $400 Million Of Senior Notes

American Equity Investment Life Holding Company (NYSE: AEL) (“American Equity” or the “Company”), a leading underwriter of index and fixed rate annuities, announced today that it has priced a public offering of $400 million aggregate principal amount of senior unsecured notes due 2021 (the “Notes”). The Notes will bear interest at 6.625% per year and will mature on July 15, 2021.

The Company intends to use the net proceeds of the offering of the Notes: (i) to pay the cash consideration required to purchase the Company’s 5.25% Contingent Convertible Senior Notes due 2029 (the “December 2029 Notes”) tendered in connection with an offer to exchange any and all of the Company’s outstanding December 2029 Notes for cash and newly issued shares of common stock if the Company commences such an offer, depending on market conditions and other factors, including the payment of any applicable accrued and unpaid interest on such December 2029 Notes, (ii) to pay the cash consideration required to purchase the Company’s 3.5% Convertible Senior Notes due 2015 (the “September 2015 Notes”) tendered in connection with an offer to exchange any and all of the Company’s outstanding September 2015 Notes for cash and newly issued shares of common stock if the Company commences such an offer, depending on market conditions and other factors, including the payment of any applicable accrued and unpaid interest on such September 2015 Notes, (iii) to repay all amounts outstanding under the Company’s existing revolving credit facility and (iv) to pay related fees and expenses. Any proceeds we are unable to use in the manner described above, due to market conditions or otherwise, or any excess proceeds after those uses may be used to tender for, redeem or repurchase any of the December 2029 Notes or September 2015 Notes that remain outstanding and/or for general corporate purposes.

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