Athene Prices $1,000,000,000 Investment Grade Senior Notes Offering
- None.
- None.
Insights
The issuance of $1 billion in senior notes with a 6.25% interest rate by Athene Holding Ltd. is a significant move that could indicate the company's strategy for capital allocation and long-term financing. Considering the current interest rate environment, a 6.25% rate could be seen as relatively high, suggesting that Athene is willing to pay a premium to secure long-term funding. This could be indicative of the company's confidence in its future cash flows and ability to cover the interest payments.
Investors might interpret this as a positive signal for the company's growth prospects, given that the proceeds are earmarked for supporting organic growth within its insurance subsidiaries. However, it's also important to note that such a move increases the company's leverage, which could impact its credit ratings and financial flexibility in the future. The involvement of top-tier investment banks as book-runners and lead managers also adds a layer of credibility to the offering.
From a market perspective, the decision by Athene to issue senior notes can be seen as a response to the current market conditions and investor appetite for fixed-income securities. The demand for such securities, especially from reputable issuers, is often driven by the search for yield in a low interest rate environment, despite recent hikes. The choice of a long-dated maturity in 2054 suggests that Athene is locking in current rates in anticipation of potential interest rate fluctuations.
Furthermore, the distribution of roles among the various financial institutions, including Deutsche Bank Securities and Goldman Sachs, as joint book-runners and others as joint lead managers, reflects a strategic approach to tap into different investor bases and ensure a successful capital raise. This also shows Athene's understanding of the capital market dynamics and its ability to navigate through complex financial operations.
In the context of the insurance industry, Athene's move to bolster its capital through a senior notes offering is a strategic approach to strengthen its capital base for supporting growth initiatives. Insurance companies often require substantial capital to underwrite new policies and expand their business. By contributing capital to its insurance subsidiaries, Athene is likely positioning itself to take advantage of market opportunities and meet regulatory capital requirements.
It is also important to consider the potential implications of this capital injection on Athene's competitive positioning within the insurance market. The ability to raise a significant amount of capital in this manner could provide Athene with a competitive edge, allowing it to invest in technology, expand its product offerings, or improve its underwriting capabilities.
WEST DES MOINES, Iowa, March 19, 2024 (GLOBE NEWSWIRE) -- Athene Holding Ltd. (“Athene”) today announced it has agreed to sell
Athene intends to use the net proceeds from the offering for general corporate purposes, including capital contributions to its insurance subsidiaries to support organic growth.
Deutsche Bank Securities, Goldman Sachs & Co. LLC, Morgan Stanley and RBC Capital Markets are acting as joint book-running managers for the offering. Apollo Global Securities, Barclays, BNP PARIBAS, BMO Capital Markets and Blaylock Van, LLC are acting as joint lead managers for the offering.
The notes are being offered pursuant to an effective shelf registration statement that has previously been filed with the Securities and Exchange Commission (the “SEC”). This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer, or solicitation to buy, if at all, will be made solely by means of a prospectus and related prospectus supplement filed with the SEC. You may obtain these documents without charge from the SEC at www.sec.gov. Alternatively, you may request copies of these materials from the joint book-running managers by contacting Deutsche Bank Securities Inc. toll-free at (800) 503-4611, Goldman Sachs & Co. LLC toll-free at (866) 471-2526, Morgan Stanley & Co. LLC toll-free at (866) 718-1649 or RBC Capital Markets, LLC toll-free at (866) 375-6829.
About Athene
Athene is a leading retirement services company with
Forward-Looking Statements
This press release contains, and certain oral statements made by Athene's representatives from time to time may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks, uncertainties and assumptions that could cause actual results, events and developments to differ materially from those set forth in, or implied by, such statements. These statements are based on the beliefs and assumptions of Athene's management and the management of Athene's subsidiaries. Generally, forward-looking statements include actions, events, results, strategies and expectations and are often identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” “should,” or “continues” or similar expressions. Forward-looking statements within this press release include, but are not limited to, statements regarding future growth prospects and financial performance. Although Athene management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. For a discussion of other risks and uncertainties related to Athene’s forward-looking statements, see its annual report on Form 10-K for the year ended December 31, 2023, which can be found at the SEC’s website www.sec.gov. All forward-looking statements described herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. Athene does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Contact:
Media Contact
Jeanne Hess
VP, External Relations
+1 646 768 7319
jeanne.hess@athene.com
FAQ
What is the purpose of Athene's $1 billion senior notes offering?
When is the expected closing date for the senior notes offering?
Who are the joint book-running managers for Athene's offering?
How can one obtain the prospectus and related materials for the offering?
