PRICING SUPPLEMENT NO. AIG-FP-4 | FILED PURSUANT TO RULE 424(b)(2) | |
DATED JANUARY 12, 2007 | REGISTRATION NO. 333-106040 | |
TO PROSPECTUS DATED JULY 24, 2006 | ||
AND PROSPECTUS SUPPLEMENT DATED OCTOBER 12, 2006 |
AMERICAN INTERNATIONAL GROUP, INC.
MEDIUM-TERM NOTES, SERIES AIG-FP,
US DOLLAR ZERO COUPON CALLABLE NOTES DUE JANUARY 18, 2047
MEDIUM-TERM NOTES, SERIES AIG-FP,
US DOLLAR ZERO COUPON CALLABLE NOTES DUE JANUARY 18, 2047
Principal Amount: U.S.$10,000,000 | Issue Date: January 18, 2007 | |
Agents’ Discount or Commission: U.S.$55,000 | Stated Maturity: January 18, 2047 | |
Net Proceeds to Issuer: U.S.$9,945,000 | Interest Rate: 0.00% | |
Form:þ Book Entryo Certificated | CUSIP No.: 02687QBH0 | |
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:
Agent | Principal Amount | |||||||||||||||
Merrill Lynch, Pierce, Fenner & Smith Incorporated | U.S.$10,000,000 | 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. |
Payment at Maturity:
At stated maturity, subject to a prior redemption, the Issuer will pay to the Holder $135,329,000. 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).
Redemption at Option of Issuer:
The notes will be redeemable, in whole only, at the option of the Issuer, upon written notice of a minimum of 10 New York business days and a maximum of 60 days, on each of the redemption dates and at the corresponding redemption prices set forth in the following table:
Redemption Date | Redemption Price | |||
January 18, 2012 | $ | 13,849,174 | ||
July 18, 2012 | 14,307,582 | |||
January 18, 2013 | 14,781,164 | |||
July 18, 2013 | 15,270,421 | |||
January 18, 2014 | 15,775,873 | |||
July 18, 2014 | 16,298,055 | |||
January 18, 2015 | 16,837,522 | |||
July 18, 2015 | 17,394,845 | |||
January 18, 2016 | 17,970,615 | |||
July 18, 2016 | 18,565,444 | |||
January 18, 2017 | 19,179,961 | |||
July 18, 2017 | 19,814,819 | |||
January 18, 2018 | 20,470,690 | |||
July 18, 2018 | 21,148,271 | |||
January 18, 2019 | 21,848,280 | |||
July 18, 2019 | 22,571,460 | |||
January 18, 2020 | 23,318,576 | |||
July 18, 2020 | 24,090,423 | |||
January 18, 2021 | 24,887,817 |
Redemption Date | Redemption Price | |||
July 18, 2021 | 25,711,605 | |||
January 18, 2022 | 26,562,661 | |||
July 18, 2022 | 27,441,886 | |||
January 18, 2023 | 28,350,214 | |||
July 18, 2023 | 29,288,608 | |||
January 18, 2024 | 30,258,063 | |||
July 18, 2024 | 31,259,607 | |||
January 18, 2025 | 32,294,301 | |||
July 18, 2025 | 33,363,245 | |||
January 18, 2026 | 34,467,570 | |||
July 18, 2026 | 35,608,448 | |||
January 18, 2027 | 36,787,090 | |||
July 18, 2027 | 38,004,745 | |||
January 18, 2028 | 39,262,704 | |||
July 18, 2028 | 40,562,302 | |||
January 18, 2029 | 41,904,917 | |||
July 18, 2029 | 43,291,972 | |||
January 18, 2030 | 44,724,938 | |||
July 18, 2030 | 46,205,337 | |||
January 18, 2031 | 47,734,736 | |||
July 18, 2031 | 49,314,758 | |||
January 18, 2032 | 50,947,080 | |||
July 18, 2032 | 52,633,431 | |||
January 18, 2033 | 54,375,601 | |||
July 18, 2033 | 56,175,436 | |||
January 18, 2034 | 58,034,846 | |||
July 18, 2034 | 59,955,803 | |||
January 18, 2035 | 61,940,344 | |||
July 18, 2035 | 63,990,573 | |||
January 18, 2036 | 66,108,664 | |||
July 18, 2036 | 68,296,865 | |||
January 18, 2037 | 70,557,495 | |||
July 18, 2037 | 72,892,952 | |||
January 18, 2038 | 75,305,713 | |||
July 18, 2038 | 77,798,337 | |||
January 18, 2039 | 80,373,466 | |||
July 18, 2039 | 83,033,833 | |||
January 18, 2040 | 85,782,257 | |||
July 18, 2040 | 88,621,655 | |||
January 18, 2041 | 91,555,037 | |||
July 18, 2041 | 94,585,514 | |||
January 18, 2042 | 97,716,300 | |||
July 18, 2042 | 100,950,715 | |||
January 18, 2043 | 104,292,190 | |||
July 18, 2043 | 107,744,267 | |||
January 18, 2044 | 111,310,609 | |||
July 18, 2044 | 114,994,996 | |||
January 18, 2045 | 118,801,337 | |||
July 18, 2045 | 122,733,668 | |||
January 18, 2046 | 126,796,160 | |||
July 18, 2046 | 130,993,120 |
In the event that a date in the tables above is not a New York business day, the redemption price will be payable on the next succeeding New York business day (without any interest or other payment in respect of such delay).
Other Provisions: | The amount payable upon an acceleration of maturity pursuant to Section 502 of the Indenture as of any date will be the Redemption Price as of the most recent Redemption Date (or the Principal Amount for any date before January 18, 2012), plus an amount equal to interest on such amount calculated at an annual rate of 6.62% for the period from such most recent redemption date (or, in case of a date before January 18, 2012, from the Issue Date, compounded semi-annually), calculated on the basis of a 360 day year comprising 12 30-day months. |
These notes have been issued with Original Issue Discount (“OID”), as defined by Section 1273 of the Internal Revenue Code of 1986, as amended. The amount of OID on each note is $12,523.90. The issue date of this note is January 18, 2007. The yield to maturity on the note is 6.62%. | ||
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: | Notwithstanding that the final maturity of the notes is more than 30 years after the original issue date, prospective investors should refer to the discussion under “United States Taxation” in the accompanying prospectus supplement for more information on OID and a discussion of the other material consequences of owning the notes. |
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 $1.8 billion aggregate principal amount (or its equivalent in one or more foreign currencies) of notes described in the accompanying prospectus supplement, including $81,551,000 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.