American Financial Group, Inc. Announces Notice of Redemption of 9-7/8% Senior Notes
November 10 2017 - 5:04PM
Business Wire
American Financial Group, Inc. (NYSE: AFG) announced today that
it has given notice of its intention to redeem all of the
$350,000,000 outstanding aggregate principal amount of its 9-7/8%
Senior Notes due June 15, 2019. The Senior Notes will be redeemed
on December 11, 2017 (the “Redemption Date”), at a price equal to
100% of principal plus a make whole premium, plus accrued and
unpaid interest to the Redemption Date, in accordance with the
terms of the Senior Notes. This press release is not an offer
to sell or a solicitation of an offer to buy any securities.
The redemption of the 9-7/8% Senior Notes is financed, in part,
by the $367 million of net proceeds from the offering of $125
million of 3.50% Senior Notes due August 2026 and $240 million of
4.50% Senior Notes due June 2047, announced on November 9, 2017. It
is expected that the early redemption of the 9-7/8% Senior Notes
will result in after-tax non-core expenses of approximately $27
million ($0.30 per share) related to a make whole premium and other
related expenses, during the fourth quarter of 2017. It is expected
that the redemption of the 9-7/8% Senior Notes and the issuance of
the 3.50% and 4.50% Senior Notes will result in annual after-tax
interest savings to AFG of $13 million ($0.14 per share) in
2018.
About American Financial Group,
Inc.
American Financial Group is an insurance holding company, based
in Cincinnati, Ohio with assets of approximately $60 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
fixed and fixed-indexed annuities in the retail, financial
institutions and education markets. Great American Insurance
Group’s roots go back to 1872 with the founding of its flagship
company, Great American Insurance Company.
Forward Looking
Statements
This press release contains certain statements that may be
deemed to be "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements in this press
release not dealing with historical results are forward-looking and
are based on estimates, assumptions and projections. Examples of
such forward-looking statements include statements relating to: the
Company's expectations concerning market and other conditions and
their effect on future premiums, revenues, earnings, investment
activities and the amount and timing of share repurchases;
recoverability of asset values; expected losses and the adequacy of
reserves for asbestos, environmental pollution and mass tort
claims; rate changes; and improved loss experience.
Actual results and/or financial condition could differ
materially from those contained in or implied by such
forward-looking statements for a variety of reasons including, but
not limited to: changes in financial, political and economic
conditions, including changes in interest and inflation rates,
currency fluctuations and extended economic recessions or
expansions in the U.S. and/or abroad; performance of securities
markets; new legislation or declines in credit quality or credit
ratings that could have a material impact on the valuation of
securities in AFG’s investment portfolio; the availability of
capital; regulatory actions (including changes in statutory
accounting rules); changes in the legal environment affecting AFG
or its customers; tax law and accounting changes; levels of natural
catastrophes and severe weather, terrorist activities (including
any nuclear, biological, chemical or radiological events),
incidents of war or losses resulting from civil unrest and other
major losses; development of insurance loss reserves and
establishment of other reserves, particularly with respect to
amounts associated with asbestos and environmental claims;
availability of reinsurance and ability of reinsurers to pay their
obligations; trends in persistency and mortality; competitive
pressures, including as a result of the outcome of U.S. business
tax reform efforts; the ability to obtain adequate rates and policy
terms; changes in AFG’s credit ratings or the financial strength
ratings assigned by major ratings agencies to AFG’s operating
subsidiaries; the impact of the conditions in the international
financial markets and the global economy (including those
associated with the United Kingdom's expected withdrawal from the
European Union, or "Brexit") relating to AFG’s international
operations; and other factors identified in AFG’s filings with the
Securities and Exchange Commission.
The forward-looking statements herein are made only as of the
date of this press release. The Company assumes no obligation to
publicly update any forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20171110005728/en/
American Financial Group, Inc.Diane P. Weidner, IRC,
513-369-5713Asst. Vice President - Investor RelationsWebsites:www.AFGinc.comwww.GreatAmericanInsuranceGroup.com
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