AIG, U.S. Department of Treasury Complete $40 Billion Preferred Stock Sale Under TARP
By Daniel at 25 November, 2008, 11:00 pm
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AIG, U.S. Department of Treasury Complete $40 Billion Preferred Stock Sale Under
TARP
Sale is Part of AIG’s Comprehensive Solution Announced on November 10th
NEW YORK, Nov 25, 2008 (BUSINESS WIRE) — American International Group, Inc.
(AIG) said today that the U.S. Department of the Treasury has purchased four
million shares of AIG Series D Preferred Stock and a warrant to purchase a number
of shares of common stock of AIG equal to 2 percent of the issued and outstanding
shares of common stock of AIG on the date of the investment for $40 billion under
the U.S. Department of the Treasury’s Troubled Assets Relief Program.
AIG will use the proceeds to reduce its outstanding borrowings under the original
credit agreement extended to AIG by the Federal Reserve Bank of New York in
September. The maximum capacity of that credit agreement will be reduced from $85
billion to $60 billion.
The Series D Preferred Stock, $5 par value per share, will pay a dividend of 10
percent annually. The warrant has a term of 10 years and is exercisable for up to
53,798,766 shares of common stock, at an exercise price equal to the par value of
the common stock at time of exercise. The securities have not been registered
under the Securities Act of 1933 and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements.
American International Group, Inc. (AIG), a world leader in insurance and
financial services, is the leading international insurance organization with
operations in more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the most extensive
worldwide property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services, financial
services and asset management around the world. AIG’s common stock is listed on
the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.
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