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PRICING SUPPLEMENT NO. AIG-FP-10
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FILED PURSUANT TO RULE 424(b)(8) |
DATED APRIL 26, 2007
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REGISTRATION NO. 333-106040 |
TO PROSPECTUS DATED JULY 24, 2006 |
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AND PROSPECTUS SUPPLEMENT DATED OCTOBER 12, 2006 |
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AMERICAN INTERNATIONAL GROUP, INC.
MEDIUM-TERM NOTES, SERIES AIG-FP,
FLOATING RATE CMT NOTES DUE MAY 8, 2008
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Principal Amount: U.S.$25,000,000
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Issue Date: May 8, 2007 |
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Agents Discount or Commission: None
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Stated Maturity Date: May 8, 2008 |
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Net Proceeds to Issuer: U.S.$25,000,000
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Interest: A single U.S. dollar
amount equal to the Principal
Amount multiplied by the per
annum rate of
1 Year CMT plus 65 basis points |
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Form: þ Book Entry o Certificated
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CUSIP No.: 02687QBR8 |
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Specified Currency (If other than U.S. dollars): N/A
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Authorized Denominations (If
other than U.S.$1,000 and
integral multiples of U.S.$1,000
in excess thereof): N/A |
Interest Payment Date: May 8, 2008 |
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The notes are being placed through or purchased by the Agents listed below:
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Agent |
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Principal Amount |
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Lehman Brothers Inc.
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U.S.$25,000,000
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Capacity: o Agent þ Principal |
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If as Agent:
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The notes are being offered at a fixed initial public offering price of ___% of principal amount. |
If as Principal:
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o The notes are being offered at varying prices related to prevailing market prices at the time of resale. |
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þ The notes are being offered at a fixed initial public offering price of 100% of principal amount. |
Payment at Maturity:
The notes will be redeemed, on the Stated Maturity Date, at 100% of the principal amount of the
notes plus Interest. If the Stated Maturity Date is not a New York business day, such sum will be
payable on the following New York business day (without any interest or other payment in respect of
such delay).
Events of Default and Acceleration:
In case an Event of Default with respect to any of the notes has occurred and is continuing, the
amount payable to a holder of a note upon any acceleration permitted by the notes, will be equal to
the amount payable on that note calculated using the date of acceleration as the Observation Date.
In case of default in payment of the notes, whether at the Stated Maturity Date or upon
acceleration, from and after that date the notes will bear interest, payable upon demand of their
holders, at the interest rate applicable as of the date on which the default occurs, to the extent
that payment of interest is legally enforceable on the unpaid amount due and payable on that date
in accordance with the terms of the notes to the date payment of that amount has been made or duly
provided for.
Other Provisions:
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1 Year CMT:
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Means the 1-year Constant Maturity US Treasury yield which appears on the Reuters
Screen FRBCMT Page on the Observation Date. If such rate does not appear on the Reuters
Screen FRBCMT Page or the Reuters Screen FRBCMT Page is unavailable, 1-Year CMT is the 1-year
Constant Maturity US Treasury yield as set forth in Federal Reserve Statistical Release H.15
on the Observation Date. |
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Observation Date:
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Means the day which is five (5) New York business
days prior to the Stated Maturity Date or, in the
case of an Event of Default and acceleration, the
date of acceleration. |
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Day Count Convention:
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30/360 |
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Calculation Agent:
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AIG Financial Products Corp. |
ERISA CONSIDERATIONS
The notes may not be purchased or held by any employee benefit plan or other plan or account that
is subject to the Employee Retirement Income Security Act of 1974, as amended (ERISA) or Section
4975 of the Code (each, a plan), or by any entity whose underlying assets include plan assets
by reason of any plans investment in the entity (a plan asset entity), unless in each case the
purchaser or holder is eligible for exemptive relief from the prohibited transaction rules of ERISA
and Section 4975 of the Code under a prohibited transaction class exemption issued by the
Department of Labor or another applicable statutory or administrative exemption. Each purchaser or
holder of the notes will be deemed to represent that either (1) it is not a plan or plan asset
entity and is not purchasing the notes on behalf of or with plan assets or (2) with respect to the
purchase and holding, it is eligible for relief under a prohibited transaction class exemption or
other applicable statutory or administrative exemption from the prohibited transaction rules of
ERISA and Section 4975 of the Code. The foregoing supplements the discussion under ERISA
Considerations in the base prospectus dated July 24, 2006.
USE OF PROCEEDS
We intend to lend the net proceeds from the sale of the notes to our subsidiary AIG Financial
Products Corp. or certain of its subsidiaries for use for general corporate purposes.
CERTAIN U.S. FEDERAL INCOME TAX CONSEQUENCES
The notes are short-term notes for U.S. federal income tax purposes. Please see especially the
discussion of the U.S. federal income tax consequences of owning and disposing of short-term
notes under the heading United States Taxation United States Holders Original Issue Discount
Short-Term Notes and United States Taxation United States Holders Purchase, Sale and
Retirement of the Notes in the accompanying prospectus supplement.
The information in this Pricing Supplement, other than the information regarding the initial public
offering price, the net proceeds to the issuer, the identities of the initial purchasers or agents,
the information under Certain U.S. Federal Income Tax Consequences above, and the following two
paragraphs, will be incorporated by reference into the Global Security representing all the
Medium-Term Notes, Series AIG-FP.
We are offering notes on a continuing basis through AIG Financial Securities Corp., ABN AMRO
Incorporated, Banca IMI S.p.A., Banc of America Securities LLC, Barclays Capital Inc., Bear,
Stearns & Co. Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., BNY Capital Markets,
Inc., Calyon Securities (USA) Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA)
LLC, Daiwa Securities America Inc., Daiwa Securities SMBC Europe Limited, Deutsche Bank Securities
Inc., Goldman, Sachs & Co., Greenwich Capital Markets, Inc., HSBC Securities (USA) Inc., J.P.
Morgan Securities Inc., Lehman Brothers Inc., McDonald Investments Inc., Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Mitsubishi UFJ Securities International plc, Morgan Stanley & Co.
Incorporated, RBC Capital Markets Corporation, Santander Investment Securities Inc., Scotia Capital
(USA) Inc., SG Americas Securities, LLC, TD Securities (USA) LLC, UBS Securities LLC, and Wachovia
Capital Markets, LLC, as agents, each of which has agreed to use its best efforts to
solicit offers to purchase notes. We may also accept offers to purchase notes through other agents.
See Plan of Distribution in the accompanying prospectus supplement. To date, including the notes
described by this pricing supplement, we have accepted offers to purchase approximately $2.7
billion aggregate principal amount (or its equivalent in one or more foreign currencies) of notes
described in the accompanying prospectus supplement, including $185,762,000 aggregate principal
amount (or its equivalent in one or more foreign currencies) of Series AIG-FP notes.
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of the notes or determined if the prospectus, the prospectus supplement or
this pricing supplement is truthful or complete. Any representation to the contrary is a criminal
offense.