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American Intl Group Inc., 8.50% Equity Units due 2/15/2011 to 8/1/2011
Ticker Symbol: AIG-A**     CUSIP: 026874115     Exchange: NYSE
Security Type:   Mandatory Convertible Security
* NOTE: This security is no longer trading as of 8/01/2011

QUANTUMONLINE.COM SECURITY DESCRIPTION:  American Intl Group Inc., Equity Units, stated amount $75 per unit, initially consisting of Corporate Units which include a stock purchase contract and initially, a 1/40, or 2.5%, undivided beneficial ownership interest in (i) the Series B-1 Junior Subordinated Debentures initially due February 15, 2041, (ii) the Series B-2 Junior Subordinated Debentures initially due May 1, 2041 and (iii) the Series B-3 Junior Subordinated Debentures initially due August 1, 2041, each with a principal amount of $1,000. The stock purchase contract requires the holder to purchase for $25 a variable number of shares of American Intl Group Inc. (NYSE: AIG) common stock on each of the three stock purchase dates of February 15, 2011, May 1, 2011 and August 1, 2011 and pays a contract adjustment rates of 2.7067% per $75 equity unit per annum through 2/15/2011, of 2.6450% per $50 equity unit per annum through 5/1/2011, and of 2.6100% per $25 equity unit per annum through 8/1/2011. The stock purchase settlement rate at each of the three stock purchase dates will be 0.54823 shares per unit if the then current market price is equal to or greater than $45.60 and 0.6579 shares per unit if the market price is equal to or less than $38.00. For market prices between those values the settlement rate will be $25 divided by the market value. Prior to the IPO of this security, the last reported sale price of the common stock on 5/12/2008 was $38.37 per share. The debentures are subject to reset and remarketing as specified in the prospectus. The Corporate Units pay quarterly distributions of 8.50% per annum on 2/1, 5/1, 8/1 & 11/1 to holders of record on the record date which is the 15th day of the month prior to the payment date while the securities remain in book-entry form (NOTE: the ex-dividend date is at least 2 business days prior to the record date). Distributions paid by these securities are derived from interest paid on the underlying debt securities and therefore are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. The debentures are pledged as collateral to secure the holder's obligations under the stock purchase contract. The holder has the right at any time to convert the Corporate Units to Treasury Units by the substitution of a specified zero-coupon U.S. Treasury securities for the debentures and to later recreate Corporate Units. The debentures are unsecured, subordinated debt securities and rank junior to the company's unsecured senior indebtedness. See the IPO prospectus for extensive additional information on the equity units and their mandatory conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.
Stock
Exchange
Cpn Rate
Ann Amt
LiqPref
CallPrice
Call Date
Matur Date
Moodys/S&P
Dated
Conversion
Shares@Price
Distribution Dates 15%
Tax Rate
NYSE
Chart
8.50%
$6.375
$75.00
N/A
2/15/2011
8/01/2041
Baa2 BBB
8/01/2011
0.54823@$45.60+
0.6579@$38.00-
2/1, 5/1, 8/1 & 11/1
Click for MW ExDiv Date
Click for Yahoo ExDiv Date
No

Go to Parent Company's Record (AIG)

Notes:  AIG had a 1 for 20 reverse stock split on 6/30/2009.

IPO - 5/14/2008 - 72.00 Million Units @ $75.00/unit.    Link to IPO Prospectus
Previous Ticker Symbol: ARNGU    Changed: 5/16/2008
Market Value $5.4 Billion

Company's Online Information Links
HOME PAGE:     http://www.aig.com/
Company's Investor Relations Information Go to Investor Relations Information
Company's Online News Releases Go to News Releases
Online Company Profile Go to Online Profile

Company's Online SEC EDGAR Filings
Company's SEC EDGAR Filings Go to SEC Filings

Company's Email Address Links
Email Address aig.infoexchange@aig.com
Printed Material Request Form on Website Go to Email Form

Address and Phone Numbers
Address:   70 Pine Street, New York, NY 10270
Main Phone Number 212-770-7000
Fax Number 212-943-1125
Investor Contact   Charlene M. Hamrah 212-770-7074
Toll Free Phone Number Unknown
CHR - Martin J. Sullivan CFO - Steven J. Bensinger

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