Published on 10/9/2014 in the Prospect News Investment Grade Daily.
New Issue: AIG sells $750 million add-on to 4.5% notes due 2044 at 137 bps spread
By Aleesia Forni
Virginia Beach, Oct. 9 – American International Group Inc. priced a $750 million add-on to its existing 4.5% senior notes (Baa1/A-/) due July 16, 2044 at Treasuries plus 137 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Pricing was at 101.103 to yield 4.432%.
The notes sold at the tight end of talk.
Proceeds will be used for general corporate purposes.
The original $1.5 billion of 4.5% 30-year bonds sold with a spread of Treasuries plus 117 bps on July 9.
BNP Paribas Securities Corp., BofA Merrill Lynch and Credit Suisse Securities (USA) LLC were the bookrunners.
The insurance company is based in New York City.
| Issuer: | American International Group Inc.
|
| Amount: | $750 million
|
| Description: | Add-on to senior notes
|
| Maturity: | July 16, 2044
|
| Bookrunners: | BNP Paribas Securities Corp., BofA Merrill Lynch, Credit Suisse Securities (USA) LLC
|
| Co-managers: | ANZ Securities, Inc., Lloyds Securities Inc., Mizuho Securities USA Inc., nabSecurities, LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Standard Chartered Bank, UniCredit Capital Markets LLC
|
| Coupon: | 4.5%
|
| Price: | 101.103
|
| Yield: | 4.432%
|
| Spread: | Treasuries plus 137 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to Jan. 16, 2044, then callable at par
|
| Trade date: | Oct. 9
|
| Settlement date: | Oct. 15
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor's: A-
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 140 bps area, tightened from Treasuries plus high-140 bps area
|
| Total issue size: | $2.25 billion, including $1.5 billion priced on July 9
|
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