American Equity Investment Life Holding Company Announces Proposed Senior Notes Offering

American Equity Investment Life Holding Company (NYSE: AEL), today announced its intention to offer $150 million aggregate principal amount of Convertible Senior Notes due 2015, subject to market and other conditions. American Equity also expects to grant the initial purchasers a 13-day over-allotment option to purchase up to an additional $50 million aggregate principal amount of notes.

The notes will be convertible, under certain circumstances, into cash, shares of American Equity's common stock or a combination of cash and shares of American Equity's common stock, at American Equity's election, based on a conversion rate to be determined. The interest rate, conversion rate, conversion price and other terms of the notes will be determined at the time of pricing of the offering. Interest on the notes will be payable semiannually in arrears on March 15 and September 15 of each year, beginning March 15, 2011.

The notes will mature on September 15, 2015, unless previously repurchased or converted in accordance with their terms prior to such date. The notes will be the Company's senior unsecured obligations and will rank equally with all of its existing and future senior unsecured debt and senior to all of its existing and future subordinated debt.