American National Group Inc. (NYSE:ANAT), a life insurance company, announced on Tuesday that it has entered into an Underwriting Agreement with several prominent underwriters, signaling a new issuance of preferred stock.
The agreement, facilitated by Wells Fargo (NYSE:WFC) Securities, LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co (NYSE:MS). LLC, and RBC Capital Markets, LLC, involves the sale of 12 million depositary shares, each representing a 1/1,000th interest in the company's 7.375% Series D Fixed-Rate Non-Cumulative Preferred Stock.
The offering, conducted through a public sale, is part of American National Group's broader capital management strategy. The proceeds from the sale, combined with existing company funds, are earmarked for the redemption of all outstanding shares of the company's 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A, and the corresponding depositary shares. This redemption is in accordance with the terms set forth by the company and is not to be interpreted as a formal notice of redemption.
The Underwriting Agreement and the subsequent offering underscore American National Group's proactive financial planning and commitment to optimizing its capital structure. The transaction is set to enhance the company's financial flexibility, though it remains subject to market conditions and other influencing factors.
Investors may view this development as a strategic move to manage the company's cost of capital and streamline its preferred stock offerings. The company's decision to replace the older Series A Preferred Stock with the new Series D issuance reflects its ongoing efforts to manage its debt and equity in a manner that supports its long-term financial health and strategic objectives.
The details of the Underwriting Agreement are available in the full text of the document, filed as an exhibit with the Securities and Exchange Commission. This filing provides investors and the public with a transparent view of the company's financial activities and strategies.
This news is based on information contained in a recent SEC filing and does not constitute investment advice or an endorsement of American National Group Inc.'s financial products or services. The forward-looking statements in the filing are subject to various risks, uncertainties, and assumptions, and actual outcomes may differ from those projected.
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