American Financial Group, Inc. Announces The Pricing of $200 Million Aggregate Principal Amount of Senior Notes

American Financial Group, Inc. AFG announced today the sale of $200 million aggregate principal amount of 6⅜% Senior Notes due June 12, 2042. The Company has granted the underwriters a 30-day option to purchase up to an additional $30 million aggregate principal amount of Senior Notes. The Senior Notes are redeemable on or after June 12, 2017, at 100% of their principal amount plus accrued and unpaid interest to the redemption date. AFG intends to apply for listing of the Senior Notes on The New York Stock Exchange. If approved, we expect trading in the Senior Notes to begin within 30 days of issuance. The net proceeds from the offering, together with cash on hand, will be used to redeem $112.5 million aggregate principal amount of 7½% Senior Notes due November 2033 and $86.25 million aggregate principal amount of 7¼% Senior Notes due January 2034, issued by one of our subsidiaries and guaranteed by us and another of our subsidiaries, in each case plus accrued and unpaid interest thereon to the date of redemption. If the underwriters exercise their option to purchase additional Senior Notes, any net proceeds from such exercise will be used either to redeem in part our 7⅛% Senior Debentures due 2034, plus accrued and unpaid interest thereon to the date of redemption, of which $115 million aggregate principal amount is outstanding, or for general working capital purposes. Due to notice requirements for the redemptions, there will be a period of several weeks (including the June 30, 2012 quarter end) when both the new Senior Notes and notes to be redeemed are outstanding.