By Cristal Cody
Chicago, April 1 – Corebridge Financial Inc., a majority-owned subsidiary of American International Group Inc., sold $6.5 billion of notes in six tranches (Baa2/BBB+/BBB+) on Thursday, a market source reported.
The sale consisted of the following parts:
• $1 billion of 3.5% three-year notes, pricing at Treasuries plus 105 basis points and 25 bps low to talk in the 130 bps area;
• $1.25 billion of 3.65% five-year notes, pricing at a spread of 125 bps over Treasuries, 25 bps low to talk in the 150 bps area;
• $1 billion of 3.85% seven-year notes, priced at a spread of Treasuries plus 145 bps and again 25 bps low to talk in the 170 bps area;
• $1.5 billion of 3.9% 10-year notes, priced at Treasuries plus 160 bps versus talk 30 bps higher in the 190 bps area;
• $500 million of 4.35% 20-year notes, priced at Treasuries plus 175 bps and 35 bps lower than talk in the 210 bps area; and
• $1.25 billion of 4.4% 30-year notes, pricing at Treasuries plus 195 bps and again 35 bps lower than talk in the Treasuries plus 230 bps area.
BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are listed as bookrunners for the Rule 144A and Regulation S transaction.
AIG is a global insurance company based in New York. Corebridge is a rebranding of SAFG Retirement Services, Inc., the parent company of AIG’s life and retirement business. Corebridge is spinning off into a separate public company.
Moody’s Investors Service said that proceeds from the bonds will be used to repay an AIG intercompany loan as part of Corebridge's recapitalization in conjunction with an initial public offering.
| Issuer: | Corebridge Financial Inc.
|
| Amount: | $6.5 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Trade date: | March 31
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 4, 2025
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 130 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 5, 2027
|
| Coupon: | 3.65%
|
| Spread: | Treasuries plus 125 bps
|
| Price talk: | Treasuries plus 150 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 5, 2029
|
| Coupon: | 3.85%
|
| Spread: | Treasuries plus 145 bps
|
| Price talk: | Treasuries plus 170 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | April 5, 2032
|
| Coupon: | 3.9%
|
| Spread: | Treasuries plus 160 bps
|
| Price talk: | Treasuries plus 190 bps area
|
|
|
| 20-year notes
|
| Amount: | $500 million
|
| Maturity: | April 4, 2042
|
| Coupon: | 4.35%
|
| Spread: | Treasuries plus 175 bps
|
| Price talk: | Treasuries plus 210 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 5, 2052
|
| Coupon: | 4.4%
|
| Spread: | Treasuries plus 195 bps
|
| Price talk: | Treasuries plus 230 bps area
|
|
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