American Financial Group will nominate two senior executives to join the American Eagle Board of Directors upon closing of the transaction.
Philip Guthrie, Chairman and Chief Executive Officer of American Eagle stated, "All of us at American Eagle are extremely pleased with this new strategic alliance.
Best "A" rated capacity from American Financial Group, coupled with additional product offerings and expansions of existing American Eagle product lines, should yield substantial benefits to American Eagle and its stockholders.
Under the capital terms of the strategic alliance, American Financial Group has agreed to invest $35 million in an American Eagle Series D Preferred Stock.
The preferred stock is callable at par by American Eagle at any time.
As part of the overall transaction, American Eagle has granted to American Financial Group warrants for 800,000 shares of American Eagle common with an exercise price of $3.
Proceeds from the transaction will be utilized to contribute capital to American Eagle Group's insurance company subsidiary, to reduce bank debt, and for other general corporate purposes.
Closing of the transaction is subject to approval by American Eagle stockholders and applicable regulatory agencies and to other customary conditions.
The Great American Eagle, of course, is impressive and the signature bird in this newest grouping, but the rest of the kites are each unique and wonderful in their own fashion and were designed to add particular nuances to our unusual kite selection.
The small American Eagle is equipped with string and the standard professional BioKite rod and reel, while the Great American Eagle comes with an exclusive high-speed rod and reel, plus string and clip.