8-K: American National Group Completes Redemption of Series A Preferred Stock

American National Group Inc. announces the completion of the redemption of its 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A.

Summary

• American National Group Inc. has completed the redemption of all 16,000 outstanding shares of its 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A.
• The corresponding 16,000,000 depositary shares, each representing a 1/1,000th interest in one share of Series A Preferred Stock, were also redeemed.
• The redemption price was $25.00 per depositary share, plus any declared but unpaid dividends and a pro-rated portion of the quarterly dividend.
• The company funded the redemption with proceeds from the sale of depositary shares representing interests in its Fixed-Rate Non-Cumulative Preferred Stock, Series D, and cash on hand.
• Trading of the Depositary Shares on the New York Stock Exchange (NYSE) has been suspended.
• The NYSE has filed a notification with the SEC to remove the Depositary Shares from listing and registration.
• American National intends to file a certification with the SEC to terminate the registration of the Depositary Shares, expected to be effective 90 days after filing.

Sentiment

Score: 7

Explanation: The announcement is positive as it indicates a successful completion of a previously announced redemption, simplifying the company's capital structure. However, it's a routine financial transaction, so the sentiment is moderately positive.

Positives

• The redemption simplifies the company's capital structure.
• The company successfully funded the redemption through the issuance of new preferred stock and existing cash.

Risks

• The press release contains forward-looking statements that are subject to risks and uncertainties, as detailed in the company's SEC filings.
• Deregistration of the Depositary Shares is expected to become effective 90 days after the Form 15 is filed.

Future Outlook

The company intends to file a certification on Form 15 with the SEC requesting the termination of registration of all of the Depositary Shares. Deregistration of the Depositary Shares is expected to become effective 90 days after the Form 15 is filed.

Management Comments

• American National Group Inc. (the Company) (NYSE: ANG PRA) today announced that the Company has completed the previously announced redemption (the Redemption) of all the 16,000 outstanding shares of its 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A (the Series A Preferred Stock) and the corresponding 16,000,000 depositary shares, each representing a 1/1,000th interest in one share of Series A Preferred Stock (the Depositary Shares).

Industry Context

Preferred stock redemptions are a common capital management strategy used by financial institutions to optimize their capital structure and reduce dividend obligations.

Comparison to Industry Standards

• Many insurance companies, such as Prudential Financial and MetLife, issue preferred stock to raise capital.
• Redeeming preferred stock is a standard practice when companies have sufficient capital or find more efficient funding sources.
• The redemption price of $25 per depositary share is typical for preferred stock.

Stakeholder Impact

• Shareholders of the Series A Depositary Shares will receive the redemption price.
• The redemption simplifies the company's capital structure, potentially benefiting common shareholders.

Next Steps

• The company will file Form 15 with the SEC to terminate the registration of the Depositary Shares.
• The SEC will process the notification of removal from listing and registration on Form 25 filed by the NYSE.

Key Dates