Athene Prices $1,000,000,000 Investment Grade Senior Notes Offering
Rhea-AI Summary
Athene Holding Ltd. (ATH) has announced the pricing of $1 billion in senior notes with a 6.625% interest rate, maturing in 2055. The offering is set to close on May 19, 2025, pending customary conditions. The company plans to utilize the proceeds for general corporate purposes, including making capital contributions to its insurance subsidiaries to support organic growth.
The offering is being managed by several prominent financial institutions, with Morgan Stanley, BofA Securities, Goldman Sachs & Co. LLC, and J.P. Morgan serving as joint book-running managers. The notes are being offered through an existing shelf registration statement filed with the SEC.
Positive
- Substantial $1 billion capital raise strengthens financial position
- Funds will support organic growth through insurance subsidiaries
- Strong syndicate of major investment banks backing the offering
Negative
- High 6.625% interest rate increases long-term debt servicing costs
- 30-year maturity represents a long-term debt obligation
- Potential impact on financial leverage and debt ratios
Insights
Athene raises $1B in long-term debt at 6.625% to fund insurance growth, strengthening capital position while taking advantage of current interest rate environment.
Athene's $1,000,000,000 senior notes offering represents a significant capital raising event with several strategic implications. The
The company's stated intention to use proceeds for "general corporate purposes, including capital contributions to its insurance subsidiaries to support organic growth" reveals a strategic focus on expanding its core insurance operations. As an insurance company, Athene's ability to write new business is directly tied to its capital base - these funds will enhance its capacity to take on additional policyholder liabilities and generate new premium revenue.
The caliber of underwriters (Morgan Stanley, BofA Securities, Goldman Sachs, and J.P. Morgan as joint book-runners) suggests strong institutional support for this offering. The 30-year maturity indicates Athene is securing long-term capital that aligns with the long-duration nature of insurance liabilities, demonstrating prudent asset-liability management. This debt issuance allows Athene to deploy capital toward higher-return insurance activities while maintaining financial flexibility without immediately diluting equity shareholders.
By pursuing debt financing rather than equity, Athene is making a calculated financial leverage decision that reflects confidence in its ability to generate returns exceeding the
AI-generated analysis. How Rhea-AI works. Not financial advice.
WEST DES MOINES, Iowa, May 14, 2025 (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.
Morgan Stanley, BofA Securities, Goldman Sachs & Co. LLC and J.P. Morgan are acting as joint book-running managers for the offering. Apollo Global Securities, Academy Securities, BMO Capital Markets, Citigroup, Ramirez & Co., Inc. and SMBC Nikko are acting as co-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 Morgan Stanley & Co. LLC toll-free at (866) 718-1649, BofA Securities, Inc. toll-free at (800) 294-1322, Goldman Sachs & Co. LLC toll-free at (866) 471-2526, or J.P. Morgan Securities LLC collect at (212) 834-4533.
About Athene
Athene is a leading retirement services company with over
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, 2024, 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.
Media Contact
Jeanne Hess
VP, External Relations
+1 646 768 7319
jeanne.hess@athene.com
