American International Group (NYSE:AIG) has initiated a cash tender offer for its 13 series of outstanding debt securities, with an aggregate purchase consideration of up to $1.0 billion. The accepted securities will be bought, retired, and cancelled by AIG, contingent on the absence of adverse legal or market events. The price for each series will be determined based on fixed spreads to reference benchmarks.
The early participation date for this tender offer is set for 5:00 p.m., New York City time, on Monday, November 20, 2023. Securities holders who tender their holdings by this date and are accepted will receive the total consideration along with accrued interest. Those who tender after this date but before the expiration date, Wednesday, December 6, 2023, will receive the tender offer consideration, which is less than the total consideration. Tenders can be withdrawn before 5:00 p.m., New York City time, on November 20, 2023.
In the event of an oversubscription, AIG will accept all securities tendered according to acceptance priority levels. AIG retains the right to waive certain conditions or modify the offer in accordance with law.
AIG has engaged BofA Securities, Inc., Citigroup Global Markets Inc., and U.S. Bancorp Investments Inc. as joint lead dealer managers for the tender offer. BNP Paribas (OTC:BNPQY) Securities Corp., SG Americas Securities, LLC and SMBC Nikko Securities America, Inc. have been appointed as co-dealer managers. Ipreo LLC will act as both the Information Agent and Tender Agent for this process.
InvestingPro Insights
As AIG initiates its cash tender offer, it's worth considering some key metrics and insights. According to InvestingPro, AIG's management has been actively buying back shares, reflecting a potential confidence in the company's future. The company also boasts a high shareholder yield, a sign of its commitment to providing value to its shareholders. However, it's important to note that 8 analysts have revised their earnings downwards for the upcoming period, and the company's revenue has been declining at an accelerating rate.
InvestingPro's real-time data shows that AIG has a market cap of 44.89 billion USD, a P/E ratio of 11.33, and a P/E ratio (adjusted) of 9.58 as of Q3 2023. The company's revenue for the same period stands at 50.15 billion USD, indicating a significant market presence despite the declining trend.
InvestingPro, which provides numerous other tips and data points for investors, suggests keeping an eye on these and other metrics as AIG navigates its tender offer.
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