Tags: AIG Warrants to Be Issued Next Week as It Works to Repay Rescue

AIG Moves Closer to Repaying $182.3 Billion Rescue

American International Group Inc., the insurer bailed out by the U.S. government, said it is set to issue 75 million warrants to shareholders by Jan. 19 as it works to repay the $182.3 billion rescue.

The U.S. Treasury Department and Federal Reserve Bank of New York agreed the insurer’s recapitalization can move forward, New York-based AIG said in a statement.

AIG said it expects to pay about $21 billion to the New York Fed to settle a credit line. It also plans to issue common stock to the Treasury in exchange for preferred shares, leaving the government with a stake of about 92 percent. Treasury would sell its shares over time, AIG said.

"We anticipate that we will be able to deliver on our promise to the American people to repay the extraordinary assistance they provided to AIG during the financial crisis of 2008,” Chief Executive Officer Robert Benmosche said in the statement.

Shareholders of record on Jan. 13 will receive warrants to buy AIG stock at $45 a share, the insurer said last week. AIG’s stock has surged almost ninefold since March 2009 and stood at $58.40 as of 4 p.m. Wednesday in New York trading.

Under Benmosche, 66, the insurer’s fourth head since 2008, AIG is focusing on property-casualty coverage and U.S. life insurance and retirement products. The company, which shrank its derivatives unit, benefited from a rebound in corporate debt holdings and investments in private-equity and hedge funds.

© Copyright 2015 Bloomberg News. All rights reserved.

1Like our page
2Share
FinanceNews
American International Group Inc., the insurer bailed out by the U.S. government, said it is set to issue 75 million warrants to shareholders by Jan. 19 as it works to repay the $182.3 billion rescue.The U.S. Treasury Department and Federal Reserve Bank of New York agreed...
AIG Warrants to Be Issued Next Week as It Works to Repay Rescue
241
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved