New Issue: AIG prices $2.5 million principal protected notes linked to WTI crude via Wachovia

By Laura Lutz

Des Moines, Jan. 2 - American International Group, Inc. priced $2.5 million of zero-coupon principal protected notes due Jan. 8, 2013 linked to WTI crude oil, according to a 424B2 filing with the Securities and Exchange Commission.

If the final price of WTI crude oil is greater than the initial price, the payout will be par plus 95% of any percentage increase in the price. Otherwise, the payout will be par minus 40% of any decrease in the price.

Wachovia Securities is the underwriter.

Issuer:	American International Group, Inc.
Issue:	Principal protected notes
Underlying commodity:	WTI crude oil
Amount:	$2.5 million
Maturity:	Jan. 8, 2013
Coupon:	0%
Price:	Par
Payout at maturity:	If final price of oil is at least initial price, par plus 95% of any increase in price; otherwise, par minus 40% of any decrease in price
Pricing date:	Dec. 31
Settlement date:	Jan. 8
Underwriter:	Wachovia Securities
Fees:	2%

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