AIG starts tender offer to buy notes from 13 series, plans to pay up to $1 billion

By Wendy Van Sickle

Columbus, Ohio, Nov. 6 – American International Group, Inc. started a cash tender offer to buy notes from 13 series for up to $1 billion, excluding accrued interest, with acceptance of tendered notes subject to priority level ranking, according to a press release.

The company is offering to buy notes from the following series, listed by acceptance priority level:

• $1 billion outstanding 2.5% notes due June 30, 2025 (Cusip: 026874DQ7), with pricing to be based on the 4.625% U.S. Treasury note due June 30, 2025 plus a fixed spread of 35 basis points;

• $750 million outstanding 3.9% notes due April 1, 2026 (Cusip: 026874DH7), with pricing to be based on the 4.625% U.S. Treasury note due Oct. 15, 2026 plus a fixed spread of 60 bps;

• €1 billion outstanding 1.875% notes due June 21, 2027 (Cusip: AN6673288), with pricing to be based on the interpolated rate plus a fixed spread of 50 bps;

• $341 million outstanding 4.2% notes due April 1, 2028 (Cusip: 026874DH7), with pricing to be based on the 4.875% U.S. Treasury note due Oct. 31, 2028 plus a fixed spread of 90 bps;

• $166.4 million outstanding 8.175% series A-6 junior subordinated debentures due May 15, 2058 with a first call date of May 15, 2038 (Cusip: 026874BS5), with pricing to be based on the 3.875% U.S. Treasury note due Aug. 15, 2033 plus a fixed spread of 200 bps;

• $143.4 million outstanding 6.82% notes due Nov. 15, 2037 (Cusip: 026874CW5), with pricing to be based on the 3.875% U.S. Treasury note due Aug. 15, 2033 plus a fixed spread of 180 bps;

• $37.7 million outstanding 6.25% series A-1 junior subordinated debentures due March 15, 2037 (Cusip: 026874BE6), with pricing to be based on the 3.875% U.S. Treasury note due Aug. 15, 2033 plus a fixed spread of 200 bps;

• $246.4 million outstanding 4.375% notes due Jan. 15, 2055 (Cusip: 026874DB0), with pricing to be based on the 3.625% U.S. Treasury note due May 15, 2053 plus a fixed spread of 155 bps;

• $584.3 million outstanding 6.25% notes due May 1, 2036 (Cusip: 026874AZ0) to be repurchased at a price calculated using the 3.875% U.S. Treasury due Aug. 15, 2033 plus 145 bps;

• $750 million outstanding 4.8% notes due July 10, 2045 (Cusip: 026874DF1) to be repurchased at a price calculated using the 4.375% U.S. Treasury due Aug. 15, 2043 plus 110 bps;

• $1 billion outstanding 4.375% notes due June 30, 2050 (Cusip: 026874DP9) to be repurchased at a price calculated using the 3.625% U.S. Treasury due May 15, 2053 plus 115 bps;

• $1 billion outstanding 4.75% notes due April 1, 2048 (Cusip: 026874DL8) to be repurchased at a price calculated using the 3.625% U.S. Treasury due May 15, 2053 plus 125 bps; and

• $746.6 million outstanding 4.5% notes due July 16, 2044 (Cusip: 026874DA2) to be repurchased at a price calculated using the 4.375% U.S. Treasury due Aug. 15, 2043 plus 120 bps.

Each series will include an early tender premium of $30 or €30 for each $1,000 or €1,000 principal amount of notes tendered by 5 p.m. ET on Nov. 20, which is also the withdrawal deadline.

Pricing will be set at 10 a.m. ET on the business date following the early participation date.

The offer will expire at 5 p.m. ET on Dec. 6.

Final settlement is expected on Dec. 8.

BofA Securities, Inc. at (888 292-0070, 980 387-3907, or +44 20 7996 5420), Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and U.S. Bancorp Investments, Inc. (800 479-3441 or 917 558-2756) are the joint lead dealer managers.

BNP Paribas Securities Corp., SG Americas Securities, LLC and SMBC Nikko Securities America, Inc. are working as co-dealer managers.

Ipreo LLC is the tender and information agent (888 593-9546, 212 849-3880, ipreo@tenderoffer@ihsmarkit.com).

AIG is a New York-based insurance provider.

© 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.