Athene Prices $600 Million Junior Subordinated Debentures Offering

Rhea-AI Summary

Athene (NYSE:ATH) has announced the pricing of $600 million in junior subordinated debentures with a 6.875% fixed-rate reset, due June 28, 2055. The debentures offering is expected to close on June 27, 2025.

The company plans to use the proceeds for general corporate purposes, including making capital contributions to its insurance subsidiaries to support organic growth. The offering is being managed by multiple financial institutions, with BofA Securities, Deutsche Bank Securities, J.P. Morgan, and Wells Fargo Securities serving as joint book-running managers.

Positive

• Raising $600 million in additional capital through debenture offering
• Funds will support organic growth through capital contributions to insurance subsidiaries
• Strong syndicate of major financial institutions supporting the offering

Negative

• Additional long-term debt obligation with 6.875% interest rate
• 30-year maturity period creates long-term financial commitment
• Junior subordinated status means lower priority in debt repayment hierarchy

Insights

Fixed Income Specialist

Athene's $600M debt offering strengthens capital position, supports growth, with high 6.875% rate reflecting current market environment.

Athene has priced a $600 million offering of junior subordinated debentures at a 6.875% fixed-rate reset, maturing in 2055. This debt instrument sits low in the capital structure, which explains the relatively high yield compared to senior debt. The 30-year term with a likely reset provision gives Athene long-term capital while providing flexibility.

The company explicitly states these funds will support organic growth through capital contributions to insurance subsidiaries. This indicates Athene is positioning for expansion in its core insurance business rather than acquisitions or shareholder returns.

The 6.875% coupon rate is noteworthy - it reflects both the subordinated nature of the debt and current market conditions. Junior subordinated debt carries higher risk as these securities rank below senior debt in the capital structure, resulting in the premium yield.

The underwriting syndicate is substantial, featuring major banks as joint book-runners with several co-managers including diverse and specialty firms like Blaylock Van and R. Seelaus, suggesting strong institutional interest in the offering.

This debt issuance strengthens Athene's capital position without diluting equity, though it does add long-term interest obligations to the balance sheet. The transaction demonstrates market confidence in Athene's long-term prospects, as investors are willing to commit capital for 30 years, albeit at a yield that compensates for the risk and duration.

WEST DES MOINES, Iowa, June 24, 2025 (GLOBE NEWSWIRE) -- Athene Holding Ltd. (“Athene”) today announced it has agreed to sell $600 million aggregate principal amount of 6.875% fixed-rate reset junior subordinated debentures due June 28, 2055. The offering is expected to close on June 27, 2025, subject to satisfaction of customary closing conditions.

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.

BofA Securities, Deutsche Bank Securities, J.P. Morgan and Wells Fargo Securities are acting as joint book-running managers for the offering. Apollo Global Securities, Barclays, Blaylock Van, LLC, BNP PARIBAS, Citigroup, R. Seelaus & Co., LLC and SMBC Nikko are acting as co-managers for the offering.

The debentures 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 BofA Securities, Inc. toll-free at (800) 294-1322, Deutsche Bank Securities Inc. toll-free at (800) 503-4611, J.P. Morgan Securities LLC collect at (212) 834-4533 and Wells Fargo Securities, LLC toll-free at (800) 645-3751.

About Athene
Athene is a leading retirement services company with over $380 billion of total assets as of March 31, 2025, and operations in the United States, Bermuda, Canada, and Japan. Athene is focused on providing financial security to individuals by offering an attractive suite of retirement income and savings products and also serves as a solutions provider to corporations.

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 Athene’s expectations regarding the completion of, and the use of proceeds from, the sale of the debentures, 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

FAQ

What is the size and interest rate of Athene's new debenture offering?

Athene is offering $600 million in junior subordinated debentures with a 6.875% fixed-rate reset.

When will Athene's debenture offering close?

The offering is expected to close on June 27, 2025, subject to customary closing conditions.

What will Athene (ATH) use the proceeds from the debenture offering for?

Athene will use the proceeds for general corporate purposes, including capital contributions to its insurance subsidiaries to support organic growth.

Who are the main underwriters for Athene's debenture offering?

BofA Securities, Deutsche Bank Securities, J.P. Morgan, and Wells Fargo Securities are acting as joint book-running managers for the offering.

When do Athene's new debentures mature?

The debentures are scheduled to mature on June 28, 2055, representing a 30-year term.