By Laura Lutz
Des Moines, July 9 - American International Group, Inc. priced a $5 million issue of Libor range notes due July 27, 2017 via Banc of America Securities LLC, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be reset quarterly. The interest rate will be equal to a base rate times the proportion of days on which the three-month Libor is at least zero and less than an upper barrier.
The base rate will be 8% from issuance to July 27, 2011, 9% from then until July 27, 2015 and 10% thereafter.
The upper barrier will be 6.75% until July 27, 2011 and 7% thereafter.
Interest is payable quarterly.
The notes are callable at par on any interest payment date beginning Oct. 27, 2007.
| Issuer: | American International Group, Inc.
|
| Issue: | Libor range notes
|
| Amount: | $5 million
|
| Maturity: | July 27, 2017
|
| Coupon: | Base rate times proportion of days on which three-month Libor is at least zero and less than an upper barrier, reset quarterly
|
| Base rate: | 8% before July 27, 2011, then 9% until July 27, 2015, and then 10% thereafter
|
| Upper barrier: | 6.75% until July 27, 2011 and 7% thereafter
|
| Price: | Par
|
| Payout at maturity: | Par plus accrued interest
|
| Call: | At par on any interest payment date beginning Oct. 27, 2007
|
| Pricing date: | July 6
|
| Settlement date: | July 27
|
| Underwriter: | Banc of America Securities LLC
|
| Fees: | None
|
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