Sept. 25 (Bloomberg) -- American International Group Inc., the insurer that paid back a $182.3 billion bailout package last year, sold $1 billion of 10-year notes as corporate bond yields fell to a six-week low.
The New York-based company issued 4.125 percent senior unsecured notes that yield 150 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg.
The notes may be rated Baa1 by Moody’s Investors Service, according to a person with knowledge of the offering, who asked not to be identified citing lack of authorization to speak publicly.
Yields on the Bank of America Merrill Lynch U.S. Corporate & High Yield Index dropped to 4.05 percent yesterday, the lowest level since Aug. 12. Sales of corporate bonds have reached $177.9 billion this month, an all-time high.
Proceeds from the AIG sale may be used for general corporate purposes, the company said in a filing today with the U.S. Securities and Exchange Commission. Barclays Plc, Deutsche Bank AG, Goldman Sachs Group Inc. and Morgan Stanley managed the deal.
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