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Cincinnati-based American Financial Group Inc. (AFG) reported it is has closed the sale of its previously announced offering of 30-year senior convertible notes, resulting in gross proceeds to the Company of approximately $175 million. The notes are senior unsecured notes, convertible, under certain conditions, into shares of AFG common stock, at a conversion price of $32.30, with a yield to maturity of 4 percent.

The company has also granted the initial purchasers a 13-day option to purchase an additional $25 million of notes.

AFG said it will use approximately $100 million of the proceeds of the offering to repay outstanding indebtedness under its existing bank line of credit and intends to use the remainder to provide capital to support its insurance operations and for other corporate purposes.