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.
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