American Equity Investment (AEL) to issue approximately $ 250 million of common stock to Brookfield Reinsurance
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American Equity Investment (NYSE: AEL) revealed:
On December 29, 2021, American Equity Investment Life Holding Company (the “Company”) and Brookfield Asset Management Reinsurance Partners Ltd. .
Brookfield Reinsurance currently owns approximately 9.85% of the issued and outstanding common shares of the Company, purchased under the terms of its previously announced investment agreement with the Company. Pursuant to the terms of the investment agreement, Brookfield Reinsurance elected to purchase additional shares to bring its total combined ownership to approximately 16% of the common shares of the Company. Accordingly, the Company plans to issue 6,775,000 common shares to Brookfield Reinsurance at a price of $ 37.33 per share, the Company’s adjusted book value as at September 30, 2021, over the next few business days.
The Company will use its $ 736 million outstanding share repurchase authorization to offset the dilution of the Brookfield Reinsurance issue and to return capital to shareholders.
The latter issue will be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), in accordance with section 4 (a) (2) of the Securities Act. Brookfield Reinsurance has declared to the Company that it is an “approved investor” within the meaning of Rule 501 of the Securities Act and that it acquires the Common Shares for investment purposes and not for, or for sale. in connection with, any distribution thereof. The Company will affix the appropriate captions to all certificates evidencing the shares it issues to Brookfield Reinsurance.
The above forward-looking statements, such as expectations and will, are based on assumptions and expectations that involve risks and uncertainties, including the “risk factors” described by American Equity in its filings with the United States Securities and Exchange Commission. American Equity’s future results may differ and it has no obligation to correct or update any such statements.