By Andrea Heisinger
Omaha, May 14 - American International Group, Inc. priced $4 billion of fixed-to-floating rate junior subordinated debentures late Tuesday, an informed source said.
They priced at par to yield 8.175%, or Treasuries plus 354.1 basis points.
The interest rate is fixed at 8.175% until May 15, 2038 and then changes to a floating rate of three-month Libor plus 419.5 bps
The debentures have an initial maturity of May 15, 2058 and a final date of May 15, 2068.
The issue is callable on May 15, 2038.
Active bookrunners were Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. with passive bookrunners Banc of America Securities LLC, Barclays Capital Inc. and Lehman Brothers Inc.
The insurance and financial services company is based in New York City.
| Issuer: | American International Group, Inc.
|
| Issue: | Hybrid junior subordinated debentures
|
| Amount: | $4 billion
|
| Maturity: | May 15, 2058 (initial), May 15, 2068 (final)
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc. (active), Banc of America Securities LLC, Barclays Capital Inc., Lehman Brothers Inc. (passive)
|
| Coupon: | 8.175% until May 15, 2038, then three-month Libor plus 419.5 bps
|
| Price: | Par
|
| Yield: | 8.175%
|
| Spread: | Treasuries plus 354.1 bps
|
| Call: | On May 15, 2038
|
| Trade date: | May 13
|
| Settlement date: | May 20
|
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