By Angela McDaniels
Seattle, March 30 - Morgan Stanley & Co. Inc. priced a $10 million issue of CMS (Constant Maturity Swap) curve accrual notes due April 18, 2022 for issuer American International Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will accrue at 7% per year until April 17, 2008. After that, interest will accrue at the base rate for each day the spread of the 30-year CMS rate over the two-year CMS rate is greater than or equal to zero.
The base rate will be 7% per year for April 18, 2008 through April 17, 2012, 9% per year through April 17, 2017 and 12% per year through maturity.
Interest will be payable quarterly.
The notes are callable at par on any interest payment date beginning April 18, 2008.
Morgan Stanley & Co. is agent.
| Issuer: | American International Group, Inc.
|
| Issue: | CMS curve accrual notes
|
| Amount: | $10 million
|
| Maturity: | April 18, 2022
|
| Coupon: | 7% per year until April 17, 2008; after that, the base rate for each day the spread of the 30-year CMS rate over the two-year CMS rate is greater than or equal to zero; payable quarterly
|
| Base rate: | 7% per year for April 18, 2008 through April 17, 2012, 9% per year through April 17, 2017 and 12% per year through maturity
|
| Price: | Prevailing market prices
|
| Call: | At par on interest payment dates beginning April 18, 2008
|
| Payout at maturity: | Par plus accrued interest, if any
|
| Pricing date: | March 28
|
| Settlement date: | April 18
|
| Agent: | Morgan Stanley & Co.
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