Aug. 20 (Bloomberg) -- American International Group Inc., the bailed-out insurer 55 percent owned by the U.S. Treasury Department, sold $250 million of three-year subordinated bonds.
AIG issued the 2.375 percent securities due August 2015 to yield 200 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The bonds may be rated Baa2, the second-lowest investment-grade level, by Moody’s Investors Service, and one level higher at BBB+ by Standard & Poor’s, according to a person familiar with the sale, who asked not to be identified because the terms are private.
The insurer’s $687.6 million of 6.25 percent junior subordinated bonds due March 2037 traded at par on Aug. 15, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Citigroup Inc. managed the sale, the proceeds of which will be used for general corporate purposes, Bloomberg data show.
To contact the reporter on this story: Matt Robinson in New York at Mrobinson55@bloomberg.net
To contact the editor responsible for this story: Alan Goldstein at firstname.lastname@example.org