By Angela McDaniels
Seattle, July 3 - Nomura Securities International, Inc. priced an additional $500,000 of Constant Maturity Swap (CMS) curve notes due July 20, 2027 for issuer American International Group Inc., raising the size of the deal to $7.2 million.
The issue initially priced at $5 million on June 28 and was upsized by $200,000 on June 29 and by $1.5 million on July 2, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be 9% for the first two years. Beginning July 20, 2009, the interest rate will equal a base rate multiplied by the proportion of days during the interest period that the spread of the 30-year CMS rate over the 10-year CMS rate is greater than or equal to zero.
The base rate will initially be 9%. It will rise to 10% on July 20, 2012 and to 20% on July 20, 2022.
Interest will be payable semiannually.
The notes are callable at par on any interest payment date beginning July 20, 2008.
| Issuer: | American International Group Inc.
|
| Issue: | Constant Maturity Swap curve medium-term notes, series AIG-FP
|
| Amount: | $5 million
|
| Maturity: | July 20, 2027
|
| Coupon: | 9% for first two years; after that, base rate multiplied by the proportion of days that the spread of the 30-year CMS rate over the 10-year CMS rate is at least zero; payable semiannually
|
| Base rate: | Initially 9%; 10% beginning July 20, 2012 and 20% beginning on July 20, 2022
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call: | On interest payment dates beginning July 20, 2008
|
| Pricing date: | June 28 for initial issue
|
| Settlement date: | July 20
|
| Underwriter: | Nomura Securities International, Inc.
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