- American International Group (AIG, Financial) details pricing terms for its tender offers on several notes, with a total amount up to $300 million.
- Offers will expire on June 6, 2025, by 5:00 p.m. ET, with possible extensions.
- Acceptance priority levels and specific reference yields determine Total Consideration for each series of notes.
American International Group, Inc. (AIG) has announced the pricing terms for a series of tender offers aimed at purchasing certain outstanding notes for cash, with a maximum total consideration of $300 million. These offers were initially revealed on June 2, 2025.
The designated reference yields and total consideration are calculated for each series of notes, which include the 5.750% Series A-9 Junior Subordinated Debentures Due 2048, 8.175% Series A-6 Junior Subordinated Debentures Due 2058, and other related securities. These calculations are based on fixed spreads plus the yield of a specified reference security as listed on Bloomberg's reference page as of June 6, 2025, at 10:00 a.m. ET.
For instance, the total consideration for the Series A-9 Junior Subordinated Debentures Due 2048 is set at $1,008.84 per $1,000 principal, based on a reference security yield of 4.003% and a fixed spread of 140 basis points. Similarly, the Series A-6 Junior Subordinated Debentures Due 2058 yield a total consideration of $1,137.94, with a 4.474% reference security yield and 210 basis points spread.
The tender offers are subject to compliance with applicable conditions and limitations, including the acceptance priority level and the potential non-acceptance of notes depending on the hierarchy. The offers will conclude at 5:00 p.m. ET on June 6, 2025, unless extended. Any valid notes tendered will receive the total consideration on either the initial settlement date, expected on June 10, 2025, or the guaranteed delivery settlement date, anticipated on June 12, 2025.
In addition to the total consideration, accepted notes will also accrue coupon payments up to, but not including, the initial settlement date. AIG has partnered with BNP Paribas Securities Corp., BofA Securities, Inc., and U.S. Bancorp Investments, Inc. as lead dealer managers for this tender offer.