By Andrea Heisinger
New York, March 19 - American International Group, Inc. sold $2 billion of notes (Baa1/A-/BBB) in two maturities, a source who worked on the deal said Monday.
The $750 million of 3% three-year notes priced at 99.844 to yield 3.055% with a spread of Treasuries plus 245 basis points. The tranche sold at the tight end of price guidance that was 15 bps to 20 bps lower than the five-year note's spread, the source said.
There is a make-whole call at 35 bps over Treasuries.
A $1.25 billion tranche of 3.8% five-year paper sold at 99.797 to yield 3.845% with a spread of Treasuries plus 265 bps. The tranche priced tight to talk in the 270 bps area.
The notes have a make-whole call at 40 bps over Treasuries.
Bookrunners were J.P. Morgan Securities LLC, RBS Securities Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
Proceeds will be used to allocate $1.5 billion of existing funds to the Matched Investment Program used to pay down AIA SPV Preferred Interests and in exchange, allocate to the MIP a greater amount of assets.
AIG was last in the market with a $2 billion offering of three- and five-year notes on Sept. 8, 2011. The 4.25% three-year notes priced at a 412.5 bps spread and the 4.875% five-year paper sold at a 425 bps spread.
The insurance company is based in New York City.
| Issuer: | American International Group, Inc.
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, RBS Securities Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Trade date: | March 19
|
| Settlement date: | March 22
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: BBB
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | March 20, 2015
|
| Coupon: | 3%
|
| Price: | 99.844
|
| Yield: | 3.055%
|
| Spread: | Treasuries plus 245 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 15 bps to 20 bps lower than five-year note spread
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 20, 2017
|
| Coupon: | 3.8%
|
| Price: | 99.797
|
| Yield: | 3.845%
|
| Spread: | Treasuries plus 265 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 270 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
