Prospectus Supplement Filed Pursuant to Rule 424(b)(3)
(to Prospectus dated April 22, 2005) Registration No. 333-123862
American Equity Investment Life Holding Company
$250,000,000 of 5.25% Contingent Convertible Senior Notes due 2024
$10,000,000 of Series B 5.25% Contingent Convertible Senior Notes due 2024
and
Shares of Common Stock Issuable Upon Conversion of the Notes
This prospectus supplement supplements the prospectus dated April 22,
2005, relating to the resale by certain of our securityholders of up to
$250,000,000 of our 5.25% Contingent Convertible Senior Notes due 2024,
$10,000,000 of our Series B 5.25% Contingent Convertible Senior Notes due 2024
and the shares of our common stock issuable upon conversion of the notes. You
should read this prospectus supplement in conjunction with the prospectus. This
prospectus supplement is qualified by reference to the prospectus, except to
the extent that the information in this prospectus supplement supersedes the
information contained in the prospectus.
The information appearing under the heading "Selling Securityholders"
in the prospectus is hereby amended by the addition or substitution, as
applicable, of the following:
Aggregate
Principal Percentage of
Amount Aggregate Principal Number of Shares Percentage of
of Notes That Amount of Notes of Common Stock Common Stock
Name May Be Sold Outstanding That May Be Sold(1) Outstanding(2)
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BP Amoco PLC Master Trust................... 1,052,000 * 72,702 *
CALAMOS(R) Market Neutral Fund - CALAMOS(R)
Investment Trust......................... 12,500,000 4.81% 863,856 2.21%
Citigroup Global Markets Inc. .............. 2,000,000 * 138,217 *
City of Southfield Fire & Police
Retirement System........................ 37,000 * 2,557 *
Consulting Group Capital Markets Funds
c/o SSI Investment Mgt. ................. 283,000 * 19,557 *
Consulting Group Capital Markets Funds
c/o State Street Bank & Trust Co. ....... 875,000 * 60,469 *
CSS, LLC.................................... 4,000,000 1.54% 276,434 *
Drawbridge Convertible I LTD................ 1,425,000 * 98,479 *
Drawbridge Convertible II LTD............... 456,000 * 31,513 *
Drawbridge Global Macro Master Fund LTD .... 3,819,000 1.47% 263,925 *
Estate of James Campbell CH................. 105,000 * 7,256 *
Estate of James Campbell EST2............... 849,000 * 58,673 *
Froley Revy Convertible Arbitrage Offshore.. 500,000 * 34,554 *
HFR CA Select Fund.......................... 700,000 * 48,375 *
Hotel Union & Hotel Industry of Hawaii
Pension Plan Master Trust................ 195,000 * 13,476 *
HSBC Investments (USA) Inc. ................ 1,000,000 * 69,108 *
Institutional Benchmarks Master Fund
Ltd. c/o Bear Stearns.................... 2,300,000 * 158,949 *
Institutional Benchmarks Master Fund
Ltd. c/o SSI Investment Mgt. ............ 1,532,000 * 105,874 *
MSS Convertible Arbitrage 1................. 8,000 * 552 *
San Diego County Employees Retirement
Association.............................. 1,800,000 * 124,395 *
Sphinx Convertible Arb Fund SPC............. 1,016,000 * 70,214 *
Sphinx Fund................................. 131,000 * 9,053 *
SSI Blended Market Neutral LP............... 210,000 * 14,512 *
SSI Hedged Convertible Market Neutral LP.... 677,000 * 46,786 *
TQA Master Fund, LTD........................ 788,000 * 54,457 *
TQA Master Plus Fund, LTD................... 1,252,000 * 86,523 *
Viacom Inc. Pension Plan Master Trust....... 44,000 * 3,040 *
Vicis Capital Master Fund................... 1,500,000 * 103,662 *
Xavex - Convertible Arbitrage 7............. 51,000 * 3,524 *
Zazove Convertible Arbitrage Fund, LP....... 6,000,000 2.31% 414,651 1.07%
Zazove Hedged Convertible Fund, LP.......... 3,200,000 1.23% 221,147 *
Zurich Institutional Benchmark Master ...... 184,000 * 12,715 *
All other holders of notes or future
transferees, pledgees, donees,
assignees, or successors of any such
holders(3)............................... 33,820,000 13.01% 2,337,249 5.74%
Total....................................... $260,000,000 100% 17,968,210(4) 31.9%(5)
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* Represents less than 1%.
(1) Assumes conversion of all of the holder's notes at a conversion rate of
69.1085 shares of common stock per $1,000 principal amount at maturity of
the notes. This conversion rate is subject to adjustment, however, as
described under "Description of the Notes -- Conversion Rights." As a
result, the number of shares of common stock issuable upon conversion of
the notes may increase or decrease in the future.
(2) Calculated based on Rule 13d-3(d)(i) of the Securities Exchange Act of
1934, as amended, using 38,375,157 shares of common stock outstanding as
of February 28, 2005. In calculating this amount for each holder, we
treated as outstanding the number of shares of common stock issuable upon
conversion of all that holder's notes, but we did not assume conversion of
any other holder's notes.
(3) Information about other selling securityholders will be set forth in
prospectus supplements, if required.
(4) Represents the number of shares of common stock into which $260,000,000
aggregate principal amount of notes would be convertible at the conversion
rate described in footnote 1 above.
(5) Represents the amount which the selling securityholders may sell under
this prospectus divided by the sum of the common stock outstanding as of
February 28, 2005, plus the 17,968,210 shares of common stock into which
the $260,000,000 aggregate principal amount of notes is convertible.
Investing in the notes and our common stock issuable upon their conversion involves risks.
See "Risk Factors" beginning on page 7 of the prospectus.
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Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or passed upon the adequacy of this prospectus. Any
representation to the contrary is a criminal offense.
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The date of this prospectus supplement is May 2, 2005.