Feb. 19 (Bloomberg) -- American International Group Inc., the insurer that repaid a U.S bailout last year, began tender offers for as much as $1.25 billion of the company’s securities as Chief Financial Officer David Herzog works to lower debt.
The securities include junior subordinated debentures denominated in pounds and euros, with rates as high as 8.625 percent, the New York-based firm said today in a statement. Other securities are denominated in dollars and tied to the SunAmerica Financial Group life insurance unit.
AIG is focusing on “selected and targeted debt reduction” to cut leverage, Herzog said on a November conference call with analysts. AIG struck deals to sell more than $70 billion in assets since 2008, including non-U.S. life insurers, as Chief Executive Officer Robert Benmosche simplified the company and repaid the rescue.
“We do have some bonds that are callable that I think make a lot of sense for us to go after,” AIG Treasurer Brian Schreiber said on a Nov. 2 conference call with analysts.
The early participation date for AIG’s tender is March 4, and March 18 is the expiration.
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