American Equity Announces Accelerated Share Repurchase Agreement - Quick Facts

(RTTNews) - American Equity Investment Life Holding Company (AEL) has entered into an accelerated share repurchase agreement with JP Morgan to repurchase $200 million of American Equity common stock. The $200 million equates to approximately 6 million shares, and represents approximately 7% of American Equity's fully diluted outstanding common stock.

Under the terms of the ASR, the company will make a payment of $200 million to JP Morgan and will receive an initial delivery of 80% of the estimated total repurchase, approximately 4.831 million shares of its common stock.

The final settlement of the ASR is expected to occur in the third quarter ending on September 30, 2023. After completion of the ASR, approximately $276 million will remain available under the company's share repurchase program.