By Andrea Heisinger
New York, Sept. 8 - American International Group, Inc. sold $2 billion of notes (Baa1/A-) in two parts on Thursday, according to a source close to the trade.
The $1.2 billion of 4.25% three-year notes was priced at 99.448 to yield 4.448% with a spread of Treasuries plus 412.5 basis points. The notes were sold in line with guidance in the 412.5 bps area.
A $800 million tranche of 4.875% five-year notes sold at 98.943 to yield 5.117% with a spread of 425 bps over Treasuries. The tranche was priced in line with talk in the 425 bps area.
Each of the tranches has a make-whole call at Treasuries plus 50 bps.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to pay maturing notes issued by AIG to fund the AIG matched investment fund program.
The holding company for insurance subsidiaries last sold $2 billion of notes on Nov. 30, 2010. The 3.65% three-year notes from that sale priced at 295 bps over Treasuries while a 6.4% 10-year note priced at 362.5 bps over Treasuries.
AIG is based in New York City.
| Issuer: | American International Group, Inc.
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc.
|
| Trade date: | Sept. 8
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
|
|
| Three-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | Sept. 15, 2014
|
| Coupon: | 4.25%
|
| Price: | 99.448
|
| Yield: | 4.448%
|
| Spread: | Treasuries plus 412.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 412.5 bps area
|
|
|
| Five-year notes
|
| Amount: | $800 million
|
| Maturity: | Sept. 15, 2016
|
| Coupon: | 4.875%
|
| Price: | 98.943
|
| Yield: | 5.117%
|
| Spread: | Treasuries plus 425 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 425 bps area
|
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