AIG announces pricing for 15 separate tender offers for up to $1 billion

By William Gullotti

Buffalo, N.Y., Nov. 17 – American International Group, Inc. announced reference yields and total considerations for its offering to buy up to $1 billion of notes in 15 separate cash tender offers, according to a press release on Wednesday.

The notes were originally issued by AIG, SunAmerica Inc. or Validus.

Listed by acceptance priority level, the company priced the following notes that are part of the tender offer, each originally issued by AIG except where noted:

• £59 million outstanding 5.75% series A-2 junior subordinated debentures due March 15, 2037 (Cusip: 026874BF3) remained unchanged and will be repurchased at £975 per £1,000 note;

• €163 million outstanding 4.875% series A-3 junior subordinated debentures due March 15, 2037 (Cusip: 026874BG1) remained unchanged and will be repurchased at €977.50 per €1,000 note;

• $12 million outstanding 7.05% notes due Dec. 1, 2025 (Cusip: 86703QBJ9) issued by SunAmerica with pricing calculated using the 1.125% U.S. Treasury due Oct. 31, 2026 with no additional margin resulted in a reference yield of 1.254% for a purchase price of $1,227.26 per $1,000 note;

• $8 million outstanding 7% notes due Feb. 13, 2026 (Cusip: 86703QBN0) issued by SunAmerica with pricing calculated using the 1.125% U.S. Treasury due Oct. 31, 2026 with no additional margin resulted in a reference yield of 1.254% for a purchase price of $1,236.20 per $1,000 note;

• $62 million outstanding 8.125% debentures due April 28, 2023 (Cusip: 866930AB6) issued by SunAmerica with pricing calculated using the 0.375% U.S. Treasury due Oct. 31, 2023 with no additional margin resulted in a reference yield of 0.518% for a purchase price of $1,109.11 per $1,000 note;

• $250 million outstanding 8.875% senior notes due Jan. 26, 2040 (Cusip: 91915WAB8) issued by Validus with pricing calculated using the 1.75% U.S. Treasury due Aug. 15, 2041 plus 165 basis points resulted in a reference yield of 2.073% for a purchase price of $1,676.21 per $1,000 note;

• $107 million outstanding 6.25% series A-1 junior subordinated debentures due March 15, 2037 (Cusip: 026874BE6) remained unchanged and will be repurchased at $1,200 per $1,000 note;

• $438 million outstanding 8.175% series A-6 junior subordinated debentures due May 15, 2058 (Cusip: 026874BS5) remained unchanged and will be repurchased at $1,500 per $1,000 note;

• $818 million outstanding 6.25% notes due May 1, 2036 (Cusip: 026874AZ0) with pricing calculated using the 1.25% U.S. Treasury due Aug. 15, 2031 plus 125 bps resulted in a reference yield of 1.61% for a purchase price of $1,398.93 per $1,000 note;

• $177 million outstanding 6.82% notes due Nov. 15, 2037 (Cusip: 026874CW5) with pricing calculated using the 1.75% U.S. Treasury due Aug. 15, 2041 plus 130 bps resulted in a reference yield of 2.073% for a purchase price of $1,423.30 per $1,000 note;

• $750 million outstanding 4.2% notes due April 1, 2028 (Cusip: 026874DK0) with pricing calculated using the 1.25% U.S. Treasury due Aug. 15, 2031 plus 25 bps resulted in a reference yield of 1.61% for a purchase price of $1,134.70 per $1,000 note;

• $600 million outstanding 4.25% notes due March 15, 2029 (Cusip: 026874DN4) with pricing calculated using the 1.25% U.S. Treasury due Aug. 15, 2031 plus 45 bps resulted in a reference yield of 1.61% for a purchase price of $1,143.44 per $1,000 note;

• £500 million outstanding 5% notes due April 26, 2023 (ISIN: XS0252367775) with pricing calculated using the 0.125% U.K. Treasury due Jan. 31, 2023 plus 35 bps resulted in a reference yield of 0.455% for a purchase price of £1,059.45 per £1,000 note;

• $500 million outstanding 4.7% notes due July 10, 2035 (Cusip: 026874DE4) with pricing calculated using the 1.25% U.S. Treasury due Aug. 15, 2031 plus 120 bps resulted in a reference yield of 1.61% for a purchase price of $1,206.45 per $1,000 note; and

• $1 billion outstanding 4.125% notes due Feb. 15, 2024 (Cusip: 026874CY1) with pricing calculated using the 0.625% U.S. Treasury due Oct. 15, 2024 plus 15 bps resulted in a reference yield of 0.829% for a purchase price of $1,069.49 per $1,000 note.

Interest will be paid to the initial settlement date.

The offers are scheduled to expire at 5 p.m. ET on Nov. 17, which is also the withdrawal deadline.

There are guaranteed delivery procedures for the tender offer. The deadline to validly tender notes is 5 p.m. ET on Nov. 19.

The initial settlement date is Nov. 19.

For guaranteed delivery, settlement is planned for Nov. 23.

As previously reported, notes in a series will not be prorated. Therefore, a certain series that has a higher acceptance priority level may not have tenders accepted when tenders from a lower-ranked series are potentially accepted.

Barclays (800 438-3242, 212 528-7581), BNP Paribas Securities Corp. (888 210-4358, 212 841-3059) and Wells Fargo Securities, LLC (866 309-6316, 704 410-4756) will serve as lead dealer managers.

ANZ Securities, Inc., nabSecurities, LLC and Standard Chartered Bank are working as co-dealer managers.

Ipreo LLC is the tender and information agent (888 593-9546, 212 849-3880, ipreo@tenderoffer@ihsmarkit.com).

AIG is a New York-based insurance provider.

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