AIG launches exchange offer for up to 74.48 million corporate units

By Jennifer Chiou

New York, Oct. 8 - American International Group, Inc. announced the start of an offer to exchange up to 74.48 million of its equity units consisting of corporate units.

The exchange offer will expire at 11:59 p.m. ET on Nov. 10.

Per corporate unit, the New York-based insurance company is offering 0.09867 common shares plus $3.2702 in cash.

The amount of units affected in the offer makes up about 95% of the outstanding units.

The offer is conditioned on the effectiveness of the company's registration statement filed in an S-4 with the Securities and Exchange Commission. There is, however, no minimum tender condition.

AIG registered 7,348,942 common shares for a proposed maximum offering price of $394,729,104, making up the amount of shares that may be issued in the offer for the corporate units.

According to a company release, the consideration is equal to the amount a holder would receive forgoing the exchange offer and instead holding the units through their final stock purchase date. AIG added that the stock and cash received will be the result of netting payments from two separate transactions - a repurchase of three series of debentures and a cancellation of the stock purchase contracts underlying the corporate units.

Bank of America Merrill Lynch (888 292-0070 or call collect 980 683-3215), Citi (800 558-3745 or call collect 212 723-6106) and Deutsche Bank Securities are the dealer managers. Global Bondholder Services Corp. is the information agent and exchange agent (call collect 212 430-3774 or 866 873-7700).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.