Atlantic American Issues Securities

Insurance holding company Atlantic American Corporation of Atlanta announced that effective May 15 it completed the private issuance of $22.5 million aggregate amount of floating rate capital securities, as part of a pooled transaction that involved various other insurance companies. The issue was completed under a newly formed, wholly owned subsidiary, Atlantic American Statutory Trust II

Net proceeds to the company were approximately $22 million, of which $17 million was used to repay existing bank debt. The balance of the proceeds is to be used for general corporate purposes. The securities issued have a floating rate of interest, approximately 5.4 percent, and have a stated term of 30 years, although they may be redeemed in whole or in part, after five years at the option of the company.

Through subsidiaries, Atlantic American is involved in the specialty markets of the life, health, property and casualty insurance industries. Its principal subsidiaries include American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company, Georgia Casualty & Surety Company, Association Risk Management General Agency, Association Casualty Insurance Company and Self-Insurance Administrators Inc.