By Aleesia Forni
Virginia Beach, July 9 – American International Group Inc. priced $2.5 billion of senior notes (Baa1/A-/BBB+) in tranches due 2019 and 2044 on Wednesday, according to a market source.
A $1 billion tranche of 2.3% five-year notes priced at 99.798 to yield 2.343%, or Treasuries plus 67 basis points.
There was also $1.5 billion of 4.5% 30-year bonds sold with a spread of Treasuries plus 117 basis points.
Pricing was at 99.397 to yield 4.537%.
Both tranches sold at the tight end of talk.
Proceeds will be used for general corporate purposes.
HSBC Securities (USA) Inc., RBC Capital Markets LLC, RBS Securities Inc., U.S. Bancorp Investments Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the joint bookrunners.
The insurance company is based in New York City.
| Issuer: | American International Group Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Joint bookrunners: | HSBC Securities (USA) Inc., RBC Capital Markets LLC, RBS Securities Inc., U.S. Bancorp Investments Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Trade date: | July 9
|
| Settlement date: | July 16
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: A-
|
| Fitch: BBB+
|
| Distribution: | SEC-registered
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 16, 2019
|
| Coupon: | 2.3%
|
| Price: | 99.798
|
| Yield: | 2.343%
|
| Spread: | Treasuries plus 67 bps
|
| Price talk: | Treasuries plus 70 bps area
|
|
|
| 30-year notes
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| Amount: | $1.5 billion
|
| Maturity: | July 16, 2044
|
| Coupon: | 4.5%
|
| Price: | 99.397
|
| Yield: | 4.537%
|
| Spread: | Treasuries plus 117 bps
|
| Price talk: | Treasuries plus 120 bps area
|
|
|
|
|
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