AIG’s $2.5 Billion in Offerings

March 22, 2018

Cleary Gottlieb represented the underwriters in a series of debt offerings that raised an aggregate of approximately $2.5 billion for American International Group (AIG) in connection with the financing of its pending acquisition of Validus Holdings, Ltd., a leading provider of reinsurance, primary insurance, and asset management services.

Cleary has represented the underwriters in numerous prior securities offerings by AIG, most recently Eurobond and Formosa offerings in 2017.

The offerings were the first U.S. registered offerings for AIG since the Financial Stability Oversight Council rescinded AIG’s designation as a nonbank systemically important financial institution in 2017. The offerings consisted of $750 million of 4.200 percent senior notes due 2028, $1 billion of 4.750 percent senior notes due 2048, and $750 million of 5.750 percent fixed-to-floating rate junior subordinated debentures due 2048. The offerings priced on March 19, 2018 and are expected to close on March 26, 2018.

All of the offerings were led by BofA Merrill Lynch and U.S. Bancorp as global coordinators and representatives of the underwriters and, together with Credit Suisse, Morgan Stanley, RBC Capital Markets and Wells Fargo Securities, as joint book-running managers. In all, 32 underwriters participated in each of the offerings.