A.M. Best Assigns Rating to AmerUs Group's New Convertible Security.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 21, 2002 A.M. Best Co. has assigned a "bbb" rating to the $150 million, 30-year convertible notes to be issued by AmerUs Group Co. (NYSE NYSE See: New York Stock Exchange : AMH AMH Abington Memorial Hospital (Abington, PA) AMH Anti-Müllerian Hormone AMH Australian Medicines Handbook AMH Automated Material Handling AMH Aviation Structural Mechanic (Hydraulics) US Navy Rating ) through a private placement offered under Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. . The notes will constitute senior subordinated indebtedness of the company. Additionally, the existing debt ratings of AmerUs Group have been affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. . The A (Excellent) financial strength rating on the group's core life insurance subsidiaries remains unchanged. Approximately $100 million of the proceeds of the offering will be used to repay bank debt, providing for a more conservative capital structure and improving AmerUs Group's financial flexibility. The impact on fixed charge coverage is slightly positive due to the new security's favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. accounting and tax treatment. The remainder of the proceeds will be used for stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. and general corporate purposes. A.M. Best expects the company to maintain a total debt (including preferreds) to capital ratio in the 25% to 30% range in the near- to medium-term. AmerUs Group's consistent profitability and sound capitalization well supports the rating level. The following rating has been assigned: AmerUs Group Co.-- -- "bbb" rating on $150 million senior subordinated convertible notes due 2032 For a list of A.M. Best's current debt ratings, please visit www.ambest.com/ratings/debtrating/companies.html. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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