AIG gets tenders for $736.5 million of 11 series of debt securities

By Angela McDaniels

Tacoma, Wash., March 22 – American International Group, Inc. announced the results of its cash tender offer for up to $1 billion principal amount of 11 series of debt securities issued by AIG and its subsidiaries.

The company received tenders for $736.5 million principal amount of debt securities and accepted all of them for purchase.

The tender offer began Feb. 23 and ended at 11:59 p.m. ET on March 21. The early participation deadline was 5 p.m. ET on March 7. Settlement is expected to occur March 23.

Holders tendered

• $15.3 million of AIG Life Holdings, Inc.’s $227.3 million 8.125% junior subordinated deferrable interest debentures, series B, which have a total consideration amount of $1,242.62;

• $169.4 million of AIG’s $607.2 million 8.175% series A-6 junior subordinated debentures, which have a total consideration amount of $1,248.42;

• $290.6 million of AIG’s $403.2 million 6.25% series A-1 junior subordinated debentures, which have a total consideration amount of $1,040.31;

• $2.3 million of AIG Life Holdings’ $116.4 million 8.5% junior subordinated debentures due July 1, 2030, which have a total consideration amount of $1,315.07;

• $6.1 million of AIG Life Holdings’ $78.9 million 7.57% junior subordinated deferrable interest debentures, series A, which have a total consideration amount of $1,167.67;

• £100,000 of AIG’s £5.6 million 8.625% series A-8 junior subordinated debentures, which have a total consideration amount of £1,129.32;

• €500,000 of AIG’s €12.9 million 8% series A-7 junior subordinated debentures, which have a total consideration amount of €1,140.72;

• $400,000 of SunAmerica Inc.’s $20.3 million 5.6% debentures due July 31, 2097, which have a total consideration amount of $902.07;

• $2.9 million of AIG Life Holdings’ $150 million 6 5/8% notes due Feb. 15, 2029, which have a total consideration amount of $1,150.95;

• $66.4 million of AIG’s $243.5 million 6.82% dollar notes due Nov. 15, 2037, which have a total consideration amount of $1,171.09; and

• $182.4 million of AIG’s $1 billion 6.25% notes due May 1, 2036, which have a total consideration amount of $1,095.37.

Holders who tendered by the early tender date will receive the total consideration amount, which includes a 5% premium.

Holders who tendered after the early deadline but prior to the expiration date will receive the total consideration amount less the early premium.

The company will also pay accrued interest.

Pricing for each series was set at 10 a.m. ET on March 8 using a reference security and a purchase spread, which ranged from 155 basis points to 370 bps.

The tender offer was subject to a financing condition.

As previously reported, the company sold $1.5 billion of 3.9% 10-year senior notes (Baa1/A-/BBB+) at a spread of Treasuries plus 200 bps on March 17.

The joint lead dealer managers for the tender offer were Credit Suisse Securities (Europe) Ltd. (+44 0 207 888 5564), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) and Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760). Global Bondholder Services Corp. (212 430-3774, 866 924-2200, +001 212 430-3774 or aig@gbsc-usa.com) was the information agent and depositary.

AIG is a New York-based insurance and financial services company.

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