AIG gives pricing, acceptance amounts of tender for $1.5 billion notes

By Wendy Van Sickle

Columbus, Ohio, Nov. 27 – American International Group, Inc. announced the pricing and acceptance amounts of its Nov. 6 cash tender offer to buy notes from 13 series for up to $1 billion (excluding accrued interest). AIG increased the tender cap to $1.5 billion from $1 billion, as previously reported.

The company announced it would purchase notes from only the series with the top three acceptance priorities, with the tenders of notes under the third series prorated.

As of 5 p.m. ET on Nov. 20, the early participation date, holders had tendered $3,350,031,000 aggregate principal amount of dollar-denominated securities and €524,765,000 aggregate principal amount of euro-denominated securities, as previously reported.

The following tenders of notes, listed in order of acceptance priority, were accepted with the prices listed per $1,000 or €1,000 principal amount:

• All $853,854,000 tendered of the $1 billion outstanding 2.5% notes due June 30, 2025 (Cusip: 026874DQ7), for a total consideration of $956.32, based on the 4.625% U.S. Treasury note due June 30, 2025 plus a fixed spread of 35 basis points;

• All $513.84 million tendered of the $750 million outstanding 3.9% notes due April 1, 2026 (Cusip: 026874DH7), for a total consideration of $971.01, based on the 4.625% U.S. Treasury note due Oct. 15, 2026 plus a fixed spread of 60 bps;

• €179,054,000 of the €524,765,000 tendered of the €1 billion outstanding 1.875% notes due June 21, 2027 (Cusip: AN6673288), for a total consideration of €940.75, based on the interpolated rate plus a fixed spread of 50 bps.

The purchase prices include an early tender premium of $30 or €30 for each $1,000 or €1,000 principal amount of notes tendered by the early participation date, which was also the withdrawal deadline.

Pricing was set at 10 a.m. ET on Nov. 21.

The following early tenders were received under the remaining series covered by the offer, listed in order of acceptance priority, but no notes under these series were accepted:

• $159,634,000 of the $341 million outstanding 4.2% notes due April 1, 2028 (Cusip: 026874DH7);

• $31,966,000 of the $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);

• $34,257,000 of the $143.4 million outstanding 6.82% notes due Nov. 15, 2037 (Cusip: 026874CW5);

• $14,016,000 of the $37.7 million outstanding 6.25% series A-1 junior subordinated debentures due March 15, 2037 (Cusip: 026874BE6);

• $35,449,000 of the $246.4 million outstanding 4.375% notes due Jan. 15, 2055 (Cusip: 026874DB0);

• $180,129,000 of the $584.3 million outstanding 6.25% notes due May 1, 2036 (Cusip: 026874AZ0);

• $332,962,000 of the $750 million outstanding 4.8% notes due July 10, 2045 (Cusip: 026874DF1);

• $527,579,000 of the $1 billion outstanding 4.375% notes due June 30, 2050 (Cusip: 026874DP9);

• $520,122,000 of the $1 billion outstanding 4.75% notes due April 1, 2048 (Cusip: 026874DL8); and

• $146,223,000 of the $746.6 million outstanding 4.5% notes due July 16, 2044 (Cusip: 026874DA2).

The company settled the early tendered notes on Nov. 22.

The offer will expire at 5 p.m. ET on Dec. 6. However, because the aggregate purchase price of the securities tendered by the early participation date exceeded the tender cap, the company does not expect to accept any further tenders of securities.

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

AIG is a New York-based insurance provider.

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