By Jennifer Chiou
New York, April 23 - Morgan Stanley & Co. Inc. priced a $20 million issue of constant maturity swap (CMS) curve accrual notes due May 4, 2022 for issuer American International Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will accrue at 7.7% per year until May 4, 2009. After that, interest will accrue at the base rate of 7.7% times the proportion of days the spread of the 30-year CMS rate over the two-year CMS rate is greater than or equal to zero.
Interest will be payable quarterly.
The notes are being offered at varying prices related to prevailing market prices at the time of resale.
The notes are callable at par on any interest payment date beginning May 4, 2009.
Morgan Stanley & Co. is agent.
| Issuer: | American International Group, Inc.
|
| Issue: | CMS curve accrual notes
|
| Amount: | $20 million
|
| Maturity: | May 4, 2022
|
| Coupon: | 7.7% per year until May 4, 2009; after that, the base rate of 7.7% times the proportion of days the spread of the 30-year CMS rate over the two-year CMS rate is greater than or equal to zero; payable quarterly
|
| Price: | Prevailing market prices
|
| Call: | At par on interest payment dates beginning May 4, 2009
|
| Payout at maturity: | Par plus accrued interest, if any
|
| Pricing date: | April 18
|
| Settlement date: | May 4
|
| Agent: | Morgan Stanley & Co.
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