USLIFE To Redeem Series A and Series B Convertible Preferred Stock.NEW YORK--(BUSINESS WIRE)--April 9, 1997--USLIFE Corporation (NYSE NYSE See: New York Stock Exchange :USH USH Universal Studios Hollywood USH Ugandan Shilling (national currency) USH Ushuaia, Tierra Del Fuego, Argentina (Airport Code) USH Usher Syndromes USH Universal Sleeve Housing ) today announced that it has called for the redemption on May 9, 1997 of all outstanding shares of its $4.50 Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , Series A (the "Preferred Series A") and $5.00 Convertible Preferred Stock, Series B (the "Preferred Series B") at a total redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. of $100.87 per share including accrued and unpaid dividends of 87 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the Preferred Series A, and $100.96 per share including accrued and unpaid dividends of 96 cents per share for the Preferred Series B. At any time up to 5:00 p.m. New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time on May 9, 1997, each share of Preferred Series A is convertible into 12 shares of Common Stock (the "Common Stock") of USLIFE Corporation and each share of Preferred Series B is convertible into 11.99 shares of Common Stock. Based upon the reported last sale price on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. as of March 31, 1997 at $46.625 per share of Common Stock, the market value of Common Stock which holders would obtain by converting a share of Preferred Series A into 12 shares of Common Stock was $559.50, and the market value of converting Preferred Series B into 11.99 shares of Common Stock was $559.03. Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. has been appointed the redemption agent. A notice of redemption and letter of transmittal Letter of Transmittal A document used by security holder to accompany certificates surrendered in an exchange or other corporate action. are being mailed to all holders of record of the Preferred Series A and Preferred Series B, who should read such documents for a full description of the terms of the redemption and the available alternatives to redemption. Additional copies of such documents may be obtained from Chase Manhattan Bank or USLIFE Corporation. USLIFE has also deposited in trust with the redemption agent an amount sufficient to pay the total redemption price. On February 13, 1997, USLIFE Corporation announced that it had entered into a definitive merger agreement with American General Corporation pursuant to which the Company will merge into American General in a transaction valued at $1.8 billion. Under the agreement, the Company's shareholders will exchange shares of the Company's common stock for $49 worth of American General common stock, subject to a maximum of approximately 1.29 shares and a minimum of approximately 1.09 shares of American General common stock. The transaction, which is subject to shareholder and regulatory approvals, is expected to close by June 30, 1997. Note to the Editor: USLIFE Corporation is a life insurance-based holding company comprised of eleven wholly owned subsidiaries. With $178 billion of life insurance in force and nearly $8 billion in assets, USLIFE Corporation operates nationwide through three ordinary life insurance companies, a credit insurance group, and six other companies that provide investment advisory, broker-dealer, marketing, real estate, data processing and administrative services. USLIFE Corporation common stock is traded under the symbol "USH" on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Chicago, Pacific and London stock exchanges. -0- USLIFE 30-Year Annual Compound Growth Rates: Assets 13% Life Insurance In Force 15% Annualized Premiums (Individual) 13% Capital & Surplus 13% After-Tax Net Gain 10% CONTACT: Richard G. Hohn Senior Vice President Investor Relations Secretary & Counsel (212) 709-6415 |
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