PRICING SUPPLEMENT NO. MP-2 | FILED PURSUANT TO RULE 424(b)(2) | |
DATED OCTOBER 13, 2006 | REGISTRATION NO. 333-106040 | |
TO PROSPECTUS DATED JULY 24, 2006 | ||
AND PROSPECTUS SUPPLEMENT DATED OCTOBER 12, 2006 |
AMERICAN INTERNATIONAL GROUP, INC.
FLOATING RATE MEDIUM-TERM NOTES, SERIES MP, MATCHED INVESTMENT PROGRAM, DUE OCTOBER 18, 2011
FLOATING RATE MEDIUM-TERM NOTES, SERIES MP, MATCHED INVESTMENT PROGRAM, DUE OCTOBER 18, 2011
Principal Amount: U.S.$400,000,000 | Original Issue Date: October 18, 2006 | |
Agents’ Discount or Commission: U.S.$1,000,000 | Stated Maturity: October 18, 2011 | |
Net Proceeds to Issuer: U.S.$399,000,000 | Interest Rate: 3 Month Libor + 11 bps | |
Form:þ Book Entryo Certificated | CUSIP No.: 02687QBD9 | |
Specified Currency (If other than U.S. dollars): N/A | Authorized Denominations (If other than U.S.$1,000 and integral multiples of U.S.$1,000 in excess thereof): N/A |
The notes are being placed through or purchased by the Agents listed below:
Lehman Brothers Inc. | U.S.$ | 113,333,000 | Capacity: | o Agent | þ Principal | |||||||||||
Morgan Stanley & Co. Incorporated | U.S.$ | 113,333,000 | Capacity: | o Agent | þ Principal | |||||||||||
Wachovia Capital Markets, LLC | U.S.$ | 113,334,000 | Capacity: | o Agent | þ Principal | |||||||||||
Citigroup Global Markets Inc. | U.S.$ | 15,000,000 | Capacity: | o Agent | þ Principal | |||||||||||
Credit Suisse Securities (USA) LLC | U.S.$ | 15,000,000 | Capacity: | o Agent | þ Principal | |||||||||||
Deutsche Bank Securities Inc. | U.S.$ | 15,000,000 | Capacity: | o Agent | þ Principal | |||||||||||
HSBC Securities (USA) Inc. | U.S.$ | 15,000,000 | Capacity: | o Agent | þ Principal |
If as Agent: | The notes are being offered at a fixed initial public offering price of ___% of principal amount. | |
If as Principal: | o The notes are being offered at varying prices related to prevailing market prices at the time of resale. | |
þ The notes are being offered at a fixed initial public offering price of 100% of principal amount. |
Initial Interest Rate: | 5.48438% | |||||
Interest Reset Dates: | Quarterly on each January 18, April 18, July 18 and October 18 | |||||
Interest Payment Dates: | Quarterly on each January 18, April 18, July 18 and October 18, | INTEREST RATE BASIS OR BASES: | ||||
commencing on January 18, 2007 | o CD Rate | |||||
o CMT Rate | ||||||
Regular Record Dates: | 15 calendar days prior to each Interest Payment Date | o CMT Moneyline Telerate Page 7051 | ||||
o CMT Moneyline Telerate Page 7052 | ||||||
Spread (+/-): + 11 bps | o One-Week Average Yield | |||||
Spread Multiplier: N/A | o One-Month Average Yield | |||||
Maximum Interest Rate: N/A | o Commercial Paper Rate | |||||
Minimum Interest Rate: N/A | o Eleventh District Cost of Funds Rate | |||||
Index Maturity: 3 Months | o Federal Funds Open Rate | |||||
o Federal Funds Rate | ||||||
INTEREST CALCULATION: | þ LIBOR | |||||
þ Regular Floating Rate Note | o LIBOR Reuters | |||||
o Floating Rate/Fixed Rate Note | þ LIBOR Moneyline Telerate | |||||
Fixed Rate Commencement Date: | o Prime Rate | |||||
Fixed Interest Rate: | o Treasury Rate | |||||
o Inverse Floating Rate Note | o Other | |||||
Fixed Interest Rate: |
Redemption Provisions:
þ | The notes cannot be redeemed prior to the Stated Maturity. | ||
o | The notes may be redeemed prior to the Stated Maturity. |
Initial Redemption Date: | |||
Initial Redemption Percentage: ___% | |||
Annual Redemption Percentage Reduction: ___% |
Optional Repayment Provisions:
þ | The notes cannot be repaid prior to the Stated Maturity. | ||
o | The notes can be repaid prior to the Stated Maturity at the option of the holder of the notes. | ||
Optional Repayment Date(s): |
Use of Proceeds: | We intend to use the net proceeds from the sale of the notes to fund the AIG Matched Investment Program, American International Group, Inc.’s principal spread-based investment activity. |
Other Provisions:
Calculation Agent: The Bank of New York
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 $1,750,000,000 aggregate principal amount (or its equivalent in one or more foreign currencies) of notes described in the accompanying prospectus supplement.
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.