AIG begins tender offer for up to $1.25 billion of debt

Shares of AIG rose 0.7 percent to close at $38.61 a share Tuesday.

Staff New York Business Journal

Insurer American International Group Inc. said it has launched a cash tender offer to buy back a total $1.25 billion of debt.

New York-based AIG (NYSE: AIG) said the offering includes up to $325 million of junior subordinated debentures denominated in British pounds and euros, up to $650 million in junior subordinated debentures denominated in U.S. dollars and up to $275 million in senior debentures, as well as other securities.

The price paid for each series of securities will be calculated on the basis of the yield to maturity of a reference security plus a spread determined using a modified ?Dutch Auction? method, AIG said.

AIG Chief Financial Officer David Herzog has said the company is focusing on ?selected and targeted debt reduction? to cut leverage, according to Bloomberg. AIG, which repaid a U.S. bailout last year, struck deals to sell more than $70 billion in assets since 2008, including non-U.S. life insurers.

Shares of AIG rose 0.7 percent to close at $38.61 a share Tuesday.

Source: http://feedproxy.google.com/~r/vertical_10/~3/idzxDQOphy0/aig-begins-tender-offer-for-up-to.html

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