American International Group, Inc. (NYSE:AIG) today commenced
(i) a cash tender offer for the junior subordinated debentures (the
“Junior Offer”) listed in Table I below (the “Junior Debt
Securities”), and (ii) a cash tender offer for the senior
notes and debentures (the “Senior Offer”) listed in Table II below
(the “Senior Debt Securities” and, together with the Junior Debt
Securities, the “Securities”). The aggregate principal amount of
Junior Debt Securities AIG can purchase in the Junior Offer is
limited to the amount AIG can purchase for (a) $1.0 billion plus
(b) the difference between $500 million and the aggregate purchase
price of the Senior Debt Securities AIG purchases in the Senior
Offer if such purchase price is less than $500 million. The
aggregate principal amount of Senior Debt Securities AIG can
purchase in the Senior Offer is limited to the amount AIG can
purchase for (a) $500 million plus (b) the difference between $1.0
billion and the aggregate purchase price of the Junior Debt
Securities AIG purchases in the Junior Offer if such purchase price
is less than $1.0 billion. The complete terms of the tender offers
are set forth in an offer to purchase, dated today (the “Offer to
Purchase”), and the related letter of transmittal (the “Letter of
Transmittal”).
The Early Participation Date for the tender offers is 5:00 p.m.,
New York City time, on June 25, 2014 (the “Early Participation
Date”), and the Expiration Date is 11:59 p.m., New York City time,
on July 10, 2014 (in each case, subject to extension). The
price paid for each series of Securities will be calculated on the
basis of the yield to maturity of the applicable reference security
set forth in Table I or II at 2:00 p.m., New York City time, on the
Early Participation Date in the case of the Securities denominated
in U.S. Dollars or 2:00 p.m., London time, on the Early
Participation Date in the case of Securities denominated in
Sterling or Euro, plus the applicable fixed spread set forth in
Table I or II, determined as more fully described in the Offer to
Purchase. If the Junior Offer is oversubscribed, AIG will accept
for payment all Junior Debt Securities validly tendered on a
prorated basis. If the Senior Offer is oversubscribed, AIG will
accept for payment all Senior Debt Securities validly tendered in
accordance with the acceptance priority levels set forth in Table
II. If there are sufficient remaining funds to purchase some, but
not all, of the remaining tendered Senior Debt Securities of a
series, AIG will accept for payment such tendered Senior Debt
Securities on a prorated basis. The Payment Date will be promptly
following the Expiration Date and is expected to be on or about
July 14, 2014.
Securities that are accepted in either of the tender offers will
be purchased, retired and cancelled by the relevant issuer.
The Junior Debt Securities subject to purchase and other
information relating to the Junior Offer are listed in Table I
below:
Table I - Junior Debt
Securities
Title of Security and
SecurityIdentifier
Issuer
ApplicableCall /Maturity
Date
PrincipalAmountOutstanding
AuthorizedDenominations
EarlyParticipationAmount(1)
Fixed Spread(basis points)
ReferenceSecurity
Reference Page
Hypothetical
TotalConsideration(2)
5.75% Series A-2 Junior Subordinated
DebenturesISIN: XS0291641420
AIG
March 15,2017
£244.0 £50,000 and integral multiples thereof £50 250 1.75% UK
Treasury Stock due January 22, 2017 Bloomberg
DMO2
£1,053.35
8.000% Series A-7 Junior Subordinated
DebenturesISIN: XS0365324838
(144A)XS0365323608 (Reg. S)
AIG May 22, 2018 €127.0 €50,000 and
integral multiples
thereof
€50 185 4.00% German Bunds due January 4, 2018 Bloomberg
PXGE
€1,219.84
8.625% Series A-8 Junior Subordinated
DebenturesISIN: XS0365317113
(144A)XS0365314284 (Reg. S)
AIG May 22, 2018 £138.2 £50,000 and integral multiples thereof £50
150 5.00% UK
Treasury due
March 7, 2018
Bloomberg
DMO2
£1,201.66
8½% Junior
Subordinated Debentures due
2030CUSIP: 00138GAA7ISIN: US00138GAA76
AIG LifeHoldings,Inc.(3)
July 1,2030
$280.7 $1,000 and
integral multiples
thereof
$50 185 3.625% U.S.
Treasury Bonds
due February 15, 2044
Bloomberg PX1 $1,340.36
6.25% Series A-1 Junior Subordinated
DebenturesCUSIP: 026874BE6ISIN: US026874BE68
AIG
March 15,2037
$608.7 $100,000 and
integral multiples
of $1,000 in
excess thereof
$50 188 3.625% U.S.
Treasury Bonds
due February 15, 2044
Bloomberg PX1 $1,118.58
8.175% Series A-6 Junior Subordinated
DebenturesCUSIP: 026874BS5U02687BW7
(Reg. S)026874BR7 (144A)ISIN:
USU02687BW75 (Reg. S)US026874BR71 (144A)
AIG May 15, 2038 $3,632.6 $1,000 and
integral multiples
thereof
$50 188 3.625% U.S.
Treasury Bonds
due February 15, 2044
Bloomberg PX1 $1,379.44
7.57 % Junior Subordinated Deferrable
Interest Debentures, Series ACUSIP:
00138GAB5ISIN: US00138GAB59
AIG LifeHoldings,Inc.(3)
December 1,
2045
$272.3
$100,000 and
integral multiples
of $1,000 in
excess thereof
$50 198 3.625% U.S.
Treasury Bonds
due February 15, 2044
Bloomberg PX1 $1,318.61
8⅛% Junior Subordinated Deferrable
Interest Debentures, Series BCUSIP:
00138GAC3ISIN: US00138GAC33
AIG LifeHoldings,Inc.(3)
March 15, 2046 $445.0 $100,000 and
integral multiples
of $1,000 in
excess thereof
$50 203 3.625% U.S.
Treasury Bonds
due February 15, 2044
Bloomberg PX1 $1,393.29
____________
(1) The Total Consideration payable for each $1,000,
£1,000 or €1,000 principal amount of Securities validly tendered on
or prior to the Early Participation Date and accepted for purchase
includes the Early Participation Amount. (2) Per $1,000, £1,000 or
€1,000 principal amount of Securities validly tendered and accepted
for purchase. The hypothetical Total Consideration for each series
of Securities was determined using the yield to maturity of the
applicable reference security at 2:00 p.m., New York City time, on
June 11, 2014 in the case of the Securities denominated in U.S.
Dollars or 2:00 p.m., London time, on June 11, 2014, in the case of
Securities denominated in Sterling or Euro. (3) Guaranteed by AIG.
The Senior Debt Securities subject to purchase and other
information relating to the Senior Offer are listed in Table II
below:
Table II - Senior Debt
Securities
Title of Security andSecurity
Identifier
Issuer
ApplicableCall /Maturity
Date
PrincipalAmountOutstanding
AcceptancePriorityLevel
AuthorizedDenominations
EarlyParticipationAmount(1)
FixedSpread(basispoints)
ReferenceSecurity
ReferencePage
HypotheticalTotalConsideration(2)
8⅛% Debentures Due April 28,
2023CUSIP: 866930AB6ISIN: US866930AB63
SunAmerica Inc.(3) April 28, 2023 $100.0 1 $1,000 and
integral multiples
thereof
$50 140 2.5% U.S. Treasury Bonds due May 15, 2024 Bloomberg PX1
$1,299.77
6.765% Sterling Notes Due November 15,
2017ISIN:XS0827565663ISIN: XS0702072900 (144A)XS0702072819 (Reg. S)
AIG November 15, 2017 £662.2 2 £100,000 and any multiple of £1,000
in excess thereof £50 110 1.75% UK Treasury Stock due January 22,
2017 Bloomberg DM02 £1,144.88
6.797% Euro Notes Due November 15,
2017ISIN: XS0827566711ISIN: XS0702072140 (144A)XS0702071928 (Reg. S)
AIG November 15, 2017 €160.9 3 €100,000 and integral
multiples of €1,000 in excess thereof
€50 85 0.5% German Bunds due April 7, 2017 Bloomberg PXGE €1,191.24
7½% Notes Due 2025CUSIP: 026351AU0ISIN:
US026351AU04
AIG LifeHoldings,Inc.(4)
July 15, 2025 $150.0 4 $1,000 and
integral multiples
thereof
$50 118 2.5% U.S. Treasury Bonds due May 15, 2024 Bloomberg PX1
$1,328.28
6.400% Notes due 2020CUSIP: 026874BW6ISIN:
US026874BW66
AIG December 15, 2020 $1,500.0 5 $2,000 and any multiple of $1,000
in excess thereof $50 115 1.5% U.S. Treasury Notes due May 31, 2019
Bloomberg PX1 $1,207.34
6⅝% Notes Due 2029CUSIP: 026351AZ9ISIN:
US026351AZ90
AIG LifeHoldings,Inc.(4)
February 15, 2029 $150.0 6 $1,000 and
integral multiples
thereof
$50 168 2.5% U.S. Treasury Bonds due May 15, 2024 Bloomberg PX1
$1,247.71
5.850% Medium-Term Notes, Series G, due
January 16, 2018CUSIP:
02687QDG0ISIN: US02687QDG01
AIG January 16, 2018 $2,500.0 7 $2,000 and any multiple of $1,000
in excess thereof $50 10 1.5% U.S. Treasury Notes due May 31, 2019
Bloomberg PX1 $1,137.25
6.820% Dollar Notes Due November 15,
2037CUSIP: 026874CW5
(144A)CUSIP: U02687 CJ5 (Reg.
S)ISIN:US026874CW57ISIN: US026874CE59 (144A)ISIN: USU02687CJ55 (Reg. S)
AIG November 15, 2037 $256.2 8 $150,000 and any multiple of $1,000
in excess thereof $50 95 3.625% U.S.
Treasury Bonds
due February 15, 2044
Bloomberg PX1 $1,348.76
5.60% Medium-Term Notes, Series G, due
October 18, 2016CUSIP:
02687QBC1ISIN: US02687QBC15
AIG October 18, 2016 $750.0 9 $1,000 and any multiple of $1,000 in
excess thereof $50 70 0.375% U.S. Treasury Notes due May 31, 2016
Bloomberg PX1 $1,099.57
____________
(1) The Total Consideration payable for each $1,000,
£1,000 or €1,000 principal amount of Securities validly tendered on
or prior to the Early Participation Date and accepted for purchase
includes the Early Participation Amount. (2) Per $1,000, £1,000 or
€1,000 principal amount of Securities validly tendered and accepted
for purchase. The hypothetical Total Consideration for each series
of Securities was determined using the yield to maturity of the
applicable reference security at 2:00 p.m., New York City time, on
June 11, 2014 in the case of the Securities denominated in U.S.
Dollars or 2:00 p.m., London time, on June 11, 2014, in the case of
Securities denominated in Sterling or Euro. (3) All obligations of
SunAmerica Inc. were assumed by AIG in 1999. (4) Guaranteed by AIG.
This press release, including the following, is qualified in its
entirety by the Offer to Purchase, and, where applicable, the
Letter of Transmittal.
The following is a brief summary of certain key elements of the
planned tender offers:
- Holders who validly tender and who do
not validly withdraw their Securities at or prior to the Early
Participation Date, and whose tenders are accepted for purchase,
will receive the Total Consideration.
- Holders who validly tender Securities
after the Early Participation Date but at or prior to the
Expiration Date, and whose securities are accepted for purchase,
will only be eligible to receive the Tender Offer Consideration,
which is equal to the Total Consideration less the Early
Participation Amount.
- The cash payable to each holder whose
Securities are accepted for purchase by AIG will include a cash
payment representing the accrued interest on those Securities to,
but excluding, the date of payment.
- Tenders of Securities may be validly
withdrawn at any time at or prior to 5:00 p.m., New York City time,
on June 25, 2014, but not thereafter. AIG reserves the right, but
is under no obligation, to increase the maximum amount of the
Securities sought in either of the tender offers. In the event of
any such increase, AIG will not be obligated (except as required by
applicable law) to extend the Early Participation Date, the
withdrawal date or the Expiration Date of the affected tender
offer.
- Consummation of the tender offers is
subject to a number of conditions, including the absence of any
adverse legal and market developments. Subject to applicable law,
AIG may waive certain conditions applicable to the tender offers or
extend, terminate or otherwise amend the tender offers. The offers
are not cross-conditioned and AIG may complete both, either or
neither of the tender offers.
AIG has retained Citigroup Global Markets Inc., Credit Suisse
Securities (USA) LLC, J.P. Morgan Securities LLC, J.P. Morgan
Securities plc and Wells Fargo Securities, LLC as the Joint Lead
Dealer Managers; ANZ Securities, Inc., Mizuho Securities USA Inc.,
Santander Investment Securities Inc., SMBC Nikko Securities
America, Inc. and Standard Chartered Bank as Co-Dealer Managers and
ING Financial Markets LLC, Natixis Securities Americas LLC, PNC
Capital Markets LLC, Samuel A. Ramirez & Company, Inc., Sandler
O’Neill & Partners, L.P. and The Williams Capital Group, L.P.
as Junior Co-Dealer Managers, for the tender offers. Global
Bondholder Services Corporation is the Information Agent and
Depositary for the tender offers. For additional information
regarding the terms of the tender offers, please contact: Citigroup
Global Markets Inc. at (800) 558-3745 (toll-free) or (212) 723-6106
(collect); Credit Suisse Securities (USA) LLC at (800) 820-1653
(toll-free) or (212) 538-2147 (collect); J.P. Morgan Securities LLC
at (866) 834-4666 (toll-free) or (212) 834-4811 (collect); J.P.
Morgan Securities plc at (+44) 20 7134 3414 (collect) or Wells
Fargo Securities, LLC at (866) 309-6316 (toll-free) or (704)
410-4760 (collect). Requests for documents and questions regarding
the tendering of Securities may be directed to Global Bondholder
Services Corporation by telephone at (212) 430-3774 (for banks and
brokers only), (866) 470-3800 (for all others toll-free) or
+001-212-430-3774 (international), by email at aig@gbsc-usa.com and
online at www.gbsc-usa.com/aig.
This news release does not constitute an offer or an invitation
by AIG to participate in the tender offers in any jurisdiction in
which it is unlawful to make such an offer or solicitation in such
jurisdiction.
Certain statements in this press release, including those
describing the completion of the tender offers, constitute
forward-looking statements. These statements are not historical
facts but instead represent only AIG’s belief regarding future
events, many of which, by their nature, are inherently uncertain
and outside AIG’s control. It is possible that actual results will
differ, possibly materially, from the anticipated results indicated
in these statements. Factors that could cause actual results to
differ, possibly materially, from those in the forward-looking
statements are discussed throughout AIG’s periodic filings with the
SEC pursuant to the Securities Exchange Act of 1934.
# # #
American International Group, Inc. (AIG) is a
leading international insurance organization serving customers in
more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional, and individual customers through one of
the most extensive worldwide property-casualty networks of any
insurer. In addition, AIG companies are leading providers of life
insurance and retirement services in the United States. AIG common
stock is listed on the New York Stock Exchange and the Tokyo Stock
Exchange.
Additional information about AIG can be found
at www.aig.com | YouTube: www.youtube.com/aig | Twitter:
@AIGInsurance | LinkedIn: http://www.linkedin.com/company/aig |
AIG is the marketing name for the worldwide
property-casualty, life and retirement, and general insurance
operations of American International Group, Inc. For additional
information, please visit our website at www.aig.com. All products
and services are written or provided by subsidiaries or affiliates
of American International Group, Inc. Products or services may not
be available in all countries, and coverage is subject to actual
policy language. Non-insurance products and services may be
provided by independent third parties. Certain property-casualty
coverages may be provided by a surplus lines insurer. Surplus lines
insurers do not generally participate in state guaranty funds, and
insureds are therefore not protected by such funds.
American International Group, Inc.Media:Jon Diat,
212-770-3505jon.diat@aig.comorInvestors:Liz Werner,
212-770-7074elizabeth.werner@aig.com
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