Terms

Series

6.35% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares, Series A

Liquidation Preference

$25.00

Coupon Rate

6.35%

Rate Type

Fixed To Floating

Annual Dividend

$1.59

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

June 30, 2029

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: Senior Shares, All Existing And Future Indebtedness Of Ahl And Its Subsidiaries, All Obligations Of Ahl'S Subsidiaries (Structurally Subordinated); Pari Passu With: Parity Shares (None Outstanding As Of Issuance Date); Senior To: Common Shares, Junior Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

No

Depositary Share Fraction

0.001

Shares Offered

30,000,000

Prospectus Summary

Athene Holding Ltd. (Bermuda-domiciled retirement services company) is offering 30,000,000 depositary shares, each representing a 1/1,000th interest in a share of its 6.35% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares, Series A, with a liquidation preference of $25.00 per depositary share. Dividends are fixed at 6.35% per annum ($1.5875/depositary share annually) until June 30, 2029, then reset quarterly to 3-month LIBOR plus 425.3 basis points. The shares are non-cumulative, meaning that any dividend Athene's board chooses not to declare is permanently forfeited — there is no obligation to make up missed payments. The Series A Preference Shares rank senior to Athene's common shares and all other junior securities, but are junior to all existing and future debt obligations of Athene Holding Ltd. and its subsidiaries. Critically, as a holding company issue, these shares are structurally subordinated to all policyholder and creditor obligations at Athene's operating insurance subsidiaries — investors have no direct claim on subsidiary assets. The issuer may call all shares (not less than all) prior to the June 30, 2029 first call date upon a 'capital disqualification event' — triggered when a regulatory change causes the shares to lose their Tier 1 capital treatment — at $25.00 per depositary share; regulatory approval may also be required for any redemption while Tier 1 treatment applies. At the $25.00 offering price, the fixed-period yield is 6.35% annually, paid quarterly on March 30, June 30, September 30, and December 30, commencing September 30, 2019. Dividends qualify as 'qualified dividend income' (QDI) taxable at preferential long-term capital gains rates for individual U.S. holders meeting holding period requirements; however, dividends are not eligible for the corporate dividends-received deduction. The dividend stopper mechanism bars Athene from paying dividends on common shares or repurchasing junior securities for cash in any period during which Series A dividends have not been declared and paid in full, providing a modest protective signaling mechanism — though because dividends are non-cumulative, any skipped payment is lost permanently.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Athene fails to declare and pay full dividends on the Series A Preference Shares on any dividend payment date, it may not pay dividends on its common shares or other junior or parity securities (except stock dividends), nor repurchase or redeem junior securities for cash, until full dividends on the Series A Preference Shares have been paid.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 69 (Strong)