AIG to Redeem Series A-3 Junior Subordinated Debentures

Rhea-AI Summary

American International Group, Inc. (NYSE: AIG) has announced its plan to redeem all outstanding Series A-3 Junior Subordinated Debentures on September 16, 2024. The redemption price will be 100% of the principal amount, plus accrued and unpaid interest up to, but not including, the redemption date. As of September 3, 2024, the outstanding aggregate principal amount of these debentures was €41,550,000. AIG clarifies that this announcement is not an official notice of redemption, and debenture holders should refer to the formal notice provided by The Bank of New York Mellon, the trustee for the debentures.

Positive

• AIG is redeeming all outstanding Series A-3 Junior Subordinated Debentures, potentially improving its debt structure
• The redemption price is 100% of the principal amount, indicating no premium or discount

Negative

• None.

Insights

Financial Analyst

AIG's decision to redeem its Series A-3 Junior Subordinated Debentures is a strategic financial move. By retiring €41.55 million in debt, the company is actively managing its capital structure. This action could potentially lower interest expenses and improve AIG's financial flexibility. The redemption at par value (100% of principal) suggests AIG is confident in its liquidity position. However, the impact on the balance sheet will be relatively minor given AIG's substantial size. Investors should note that while this move may slightly improve debt ratios, it's unlikely to significantly alter AIG's overall financial picture. The €41.55 million redemption is a drop in the bucket for a company with a market cap exceeding $40 billion.

Market Research Analyst

This redemption announcement, while routine, offers insights into AIG's financial strategy. The company is taking advantage of the current interest rate environment to optimize its debt structure. This move could be seen as mildly positive for investors, as it demonstrates proactive financial management. However, the market reaction is likely to be neutral due to the relatively small scale of the redemption. The timing, set for September 2024, gives bondholders ample notice and aligns with typical corporate debt management practices. Investors should view this as part of AIG's ongoing efforts to maintain a healthy balance sheet rather than a signal of any significant shift in the company's financial position or strategy.

NEW YORK--(BUSINESS WIRE)-- American International Group, Inc. (NYSE: AIG) today announced that it will redeem all of its outstanding Series A-3 Junior Subordinated Debentures (Common Code 026874BG1 / ISIN XS0291642154) (the “Debentures”) on September 16, 2024 (the “Redemption Date”). On the Redemption Date, AIG will pay to the registered holders of the Debentures a redemption price equal to 100% of the principal amount of the Debentures, plus accrued and unpaid interest to, but not including, the Redemption Date. As of September 3, 2024, €41,550,000 aggregate principal amount of the Debentures were outstanding.

This press release does not constitute a notice of redemption of the Debentures. Holders of the Debentures should refer to the notice of redemption delivered to the registered holders of the Debentures by The Bank of New York Mellon, the trustee with respect to the Debentures.

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Certain statements in this press release, including those describing the completion of the redemption, constitute forward-looking statements. These statements are not historical facts but instead represent only AIG’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside AIG’s control. It is possible that actual results will differ, possibly materially, from the anticipated results indicated in these statements. Factors that could cause actual results to differ, possibly materially, from those in the forward-looking statements are discussed throughout AIG’s periodic filings with the SEC pursuant to the Securities Exchange Act of 1934.

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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. For additional information, visit www.aig.com. This website with additional information about AIG has been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release.

AIG is the marketing name for the worldwide operations of American International Group, Inc. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries and jurisdictions, and coverage is subject to underwriting requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240903565286/en/

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

Nikia Redhead (Media): Nikia.Redhead@aig.com

Source: American International Group, Inc.

FAQ

When will AIG redeem its Series A-3 Junior Subordinated Debentures?

AIG will redeem its Series A-3 Junior Subordinated Debentures on September 16, 2024.

What is the redemption price for AIG's Series A-3 Junior Subordinated Debentures?

The redemption price is 100% of the principal amount, plus accrued and unpaid interest up to, but not including, the redemption date.

How much of AIG's Series A-3 Junior Subordinated Debentures were outstanding as of September 3, 2024?

As of September 3, 2024, €41,550,000 aggregate principal amount of the Series A-3 Junior Subordinated Debentures were outstanding.

Who is the trustee for AIG's Series A-3 Junior Subordinated Debentures?

The Bank of New York Mellon is the trustee for AIG's Series A-3 Junior Subordinated Debentures.