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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
* 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.
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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
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8.50%
$6.375
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$75.00
N/A
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2/15/2011
8/01/2041
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Baa2
BBB
8/01/2011
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0.54823@$45.60+
0.6579@$38.00-
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2/1, 5/1, 8/1 & 11/1
Click for MW ExDiv Date
Click for Yahoo ExDiv Date
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No
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Go to Parent Company's Record (AIG)
Notes: AIG had a 1 for 20 reverse stock split on 6/30/2009.
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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
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Company's Online SEC EDGAR Filings |
Company's Email Address Links |
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
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212-770-7074
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Toll Free Phone Number |
Unknown |
CHR - Martin J. Sullivan |
CFO - Steven J. Bensinger |
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