American International Group has priced its public offering of around 171.05 million shares of common stock at $38 per share for net proceeds of approximately $6.5 billion.
In addition, AIG has granted the underwriters a 30-day option to purchase around 25.65 million shares of common stock to cover over-allotments.
The company has concurrently priced its $5.4 billion public offering of 72 million equity units, with an initial stated amount of $75 per unit. The threshold appreciation price of the equity units is $45.60, which represents a premium of 20% over the concurrent public offering price of AIG common stock of $38 per share.
The underwriters have been granted a 13-day option to purchase up to an additional 6.4 million equity units to cover over-allotments. The combined size of these two offerings has been increased from the previously announced $7.5 billion.
AIG intends to use the net proceeds from the offerings for general corporate purposes.