AIG holders tender 49.47 million equity units in exchange offer

By Angela McDaniels

Tacoma, Wash., Nov. 24 - American International Group, Inc. received 49,474,600 equity units consisting of corporate units during an exchange offer that ended at 11:59 p.m. ET on Nov. 23.

Holders will receive 0.09867 common shares plus $3.2702 in cash per unit. In total, the company will deliver 4,881,667 shares and pay $161.8 million in cash.

The consideration is equal to the amount holders would receive if they held their units through their final stock purchase date. AIG added that the stock and cash received will be the result of netting payments from two separate transactions: a repurchase of three series of debentures and a cancellation of the stock purchase contracts underlying the corporate units.

A total of 28,925,400 corporate units will remain outstanding once the exchange is complete.

The offer began Oct. 8 and was originally scheduled to end on Nov. 10 before being extended twice.

The company offered to exchange up to 74.48 million units.

Bank of America Merrill Lynch (888 292-0070 or call collect 980 683-3215), Citi (800 558-3745 or call collect 212 723-6106) and Deutsche Bank Securities were the dealer managers. Global Bondholder Services Corp. was the information agent and exchange agent (866 873-7700or call collect 212 430-3774 ).

AIG is a New York-based insurance company.

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