AIG Announces Pricing of Secondary Offering of Corebridge Financial, Inc. Common Stock

Rhea-AI Summary

American International Group (NYSE: AIG) has priced its secondary offering of Corebridge Financial (NYSE: CRBG) common stock at $29.20 per share.

The offering involves 30 million shares, expected to net AIG approximately $876 million. Additionally, AIG has allowed the underwriter a 30-day option to purchase up to 4.5 million more shares.

The offering will close on June 3, 2024, pending customary conditions. Morgan Stanley & Co. is the sole underwriter and may sell the shares through various market channels.

Proceeds from the sale will go directly to AIG. Relevant documents can be obtained from the SEC's website or Morgan Stanley.

Positive

• Pricing of the secondary offering set at $29.20 per share.
• Gross proceeds from the sale expected to be approximately $876 million.
• AIG has granted a 30-day option for the underwriter to purchase an additional 4.5 million shares.
• Morgan Stanley & Co. acts as the underwriter, indicating strong institutional backing.
• Proceeds from the sale will be directly received by AIG, potentially boosting financial liquidity.

Negative

• Potential dilution of Corebridge Financial stock due to the large number of shares being offered.
• AIG is selling a significant portion of its holdings (30 million out of 608 million), which could be seen as a lack of confidence in Corebridge Financial's future performance.
• The offering is dependent on customary closing conditions, which if unmet, could delay or cancel the offering.

Insights

Financial Analyst

The pricing of the secondary offering of Corebridge Financial, Inc.'s common stock at $29.20 per share is a significant development. AIG is looking to divest approximately 30 million shares, translating to gross proceeds of around $876 million. This move indicates a potential strategy for AIG to raise capital and streamline its portfolio, although it will slightly dilute AIG's holdings in Corebridge.

For investors, it's critical to note that secondary offerings typically introduce more shares into the market, which could exert downward pressure on the stock price of Corebridge in the short term. However, the offering's success will depend on market demand and the involvement of Morgan Stanley & Co. LLC as the underwriter could lend credibility to the transaction.

Additionally, the 30-day option granted to the underwriter to purchase an additional 4.5 million shares suggests confidence in the demand for Corebridge's stock. The net proceeds from this offering going entirely to AIG further indicates the company's intent to use these funds for its operational or strategic purposes, which could have positive long-term implications for AIG's financial health.

Market Research Analyst

The secondary offering of Corebridge Financial, Inc. is a clear signal of AIG's strategic decision to monetize a portion of its stake in Corebridge. This action is consistent with AIG's broader strategy to optimize its business portfolio. For retail investors, it’s important to understand that while such offerings might temporarily impact the stock price, they also reflect the parent company's confidence in its core business operations and the marketability of its holdings.

The pricing at $29.20 per share indicates a valuation that AIG believes is fair in the current market context. The structure of the sale, with the option for an additional purchase by the underwriter, adds an element of flexibility and shows responsiveness to market conditions. The role of Morgan Stanley as the underwriter reinforces the credibility and potential success of this offering.

For Corebridge Financial, the increased liquidity and visibility resulting from this offering might attract more investor interest, which could be beneficial in the long run. However, potential investors should keep an eye on the stock's performance post-offering to gauge the market's reception and any resulting volatility.

NEW YORK--(BUSINESS WIRE)-- American International Group, Inc. (NYSE: AIG) today announced that it has priced the secondary offering of Corebridge Financial, Inc. (NYSE: CRBG) common stock at $29.20 per share. The offering is expected to close on June 3, 2024, subject to customary closing conditions.

AIG, as the selling stockholder, has offered 30 million existing shares of common stock (out of approximately 608 million total shares of common stock outstanding) of Corebridge Financial, corresponding to approximately $876 million of gross proceeds. AIG has also granted a 30-day option to the underwriter to purchase up to an additional 4.5 million shares. All of the net proceeds from the offering will go to AIG.

Morgan Stanley & Co. LLC is acting as the underwriter for the offering. The underwriter may offer the shares of common stock from time to time for sale in one or more transactions on the NYSE, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.

The offering of common stock is being made only by means of a prospectus and an accompanying preliminary prospectus supplement. Copies of the prospectus and accompanying preliminary prospectus supplement relating to the offering may be obtained by contacting Morgan Stanley & Co. LLC via mail at 180 Varick Street, 2nd Floor, New York, NY, 10014.

A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission on November 6, 2023 and became effective automatically. The registration statement may be obtained free of charge at the SEC’s website at www.sec.gov (EDGAR/Company Filings) under “Corebridge Financial, Inc.” This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About AIG

American International Group, Inc. (NYSE: AIG) is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals in approximately 190 countries and jurisdictions protect their assets and manage risks through AIG operations and network partners.

About Corebridge Financial

Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $390 billion in assets under management and administration as of March 31, 2024, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240530984354/en/

Quentin McMillan (Investors): quentin.mcmillan@aig.com

Claire Talcott (Media): claire.talcott@aig.com

Source: American International Group, Inc.

FAQ

What is the price of AIG's secondary offering of Corebridge Financial stock?

The secondary offering of Corebridge Financial stock is priced at $29.20 per share.

How many shares is AIG offering in the Corebridge Financial secondary stock sale?

AIG is offering 30 million shares in the Corebridge Financial secondary stock sale.

When will AIG's secondary offering of Corebridge Financial stock close?

The offering is expected to close on June 3, 2024, subject to customary closing conditions.

What is the expected gross proceeds from AIG's secondary offering of Corebridge Financial stock?

The expected gross proceeds from the offering are approximately $876 million.

Who is the underwriter for AIG's secondary offering of Corebridge Financial stock?

Morgan Stanley & Co. is acting as the underwriter for the offering.

Will AIG receive the net proceeds from the Corebridge Financial stock offering?

Yes, all net proceeds from the offering will go to AIG.

Is there an option for the underwriter to purchase additional shares in AIG's offering?

Yes, AIG has granted a 30-day option to the underwriter to purchase up to an additional 4.5 million shares.