AIG Bond, Asset Deals Charge Ahead

AIG took additional steps toward independence this week, closing two bond offerings and the sale of a majority stake its consumer finance business.
By Lauren LaCapra ,

NEW YORK (

TheStreet

) --

American International Group

(AIG) - Get Report

continued to make progress on its path to independence this week, selling $2 billion in bonds to private investors and closing a deal with

Fortress Investment Group

(FIG)

to sell a noncore business.

On Tuesday, the insurance giant detailed two bond offerings in regulatory filings, the first successful issuance since its bailout. AIG sold $1.5 billion in 10-year notes at a 6.4% rate and another $500 million in four-year notes at a 3.65% rate. The bonds received investment-grade ratings by Moody's Investor Services and Standard & Poor's and priced a few points over comparable Treasury bills.

>>>AIG Prepares to Tap Private Market

AIG also closed a deal with Fortress on Tuesday to sell an 80% stake in its consumer-finance business, American General Finance. The pricing was not disclosed.

Neither event was unexpected: AIG announced the AGF deal in August and has hinted at a maiden journey back into the bond market for months. They merely signaled AIG's ongoing progress as it prepares to exit its government bailout. The insurer will soon issue 1.65 billion shares of common stock to the U.S. Treasury Department, having completed an exchange offer for private investors last month.

>>>AIG Completes Exchange Offer

On Wednesday, its shares were rising back above $42 for the first time since Nov. 22. In recent trading, the stock was up 1.8% at $42.02.

-- Written by Lauren Tara LaCapra in New York

.

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