A.M. Best Assigns Debt Rating to American Equity Investment Life Holding Company’s Senior Unsecured Notes
A.M. Best Co. has assigned a debt rating of ”bbb-” to the
recently issued $400 million 6.625% senior unsecured notes, due 2021 of American
Equity Investment Life Holding Company (AEL) (West Des Moines, IA)
[NYSE: AEL]. The assigned outlook is stable.
The proceeds from the debt issuance will be used to re-purchase AEL’s
5.25% contingent convertible senior notes, due 2029 as well as its 3.50%
convertible senior notes, due 2015. Any excess proceeds will be used for
general corporate purposes. While AEL’s financial leverage will
temporarily increase, it will remain within A.M. Best’s guidelines to
support its ratings as well as its interest coverage. In addition, the
debt offering is pursuant to a shelf registration statement filed with
the Securities & Exchange Commission.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Best’s Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
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