By Laura Lutz
Des Moines, Aug. 17 - American International Group, Inc. priced an additional $8 million of Constant Maturity Swap (CMS) curve notes due Aug. 20, 2027 via Nomura Securities International, Inc. to bring the total issue amount to $19.5 million, according to a 424B2 filing with the Securities and Exchange Commission.
AIG earlier priced two $5 million issues of securities on July 20. A $1.5 million add-on priced on Aug. 9.
Interest will accrue at 9.5% per year through Aug. 20, 2009. After that, the interest rate will be equal to a base rate times the proportion of days during the interest period that the spread of the 30-year CMS rate over the 10-year CMS rate is greater than or equal to zero.
The base rate will initially be 9.5%. It will rise to 14% on Aug. 20, 2015.
Interest is payable semiannually.
The notes are callable in whole at par on any interest payment date from Aug. 20, 2008 to and including Feb. 20, 2027.
| Issuer: | American International Group, Inc.
|
| Issue: | Constant Maturity Swap curve medium-term notes, series AIG-FP
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| Amount: | $19.5 million, upsized from $11.5 million
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| Maturity: | Aug. 20, 2027
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| Interest: | 9.5% until Aug. 20, 2009; after that, base rate times proportion of days that the spread of the 30-year CMS rate over the 10-year CMS rate is at least zero; base rate is 9.5% from Aug. 20, 2009 and rises to 14% on Aug. 20, 2015
|
| Price: | Par
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| Payout at maturity: | Par
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| Call: | On interest payment dates from Aug. 20, 2008 to and including Feb. 20, 2027
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| Pricing date: | July 13 for original $10 million; Aug. 6 for $1.5 million; Aug. 16 for $8 million
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| Settlement date: | July 20 for original $11.5 million; Aug. 20 for add-on
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| Underwriter: | Nomura Securities International, Inc.
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| Fees: | None
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