Giant insurer American International Group (NYSE:AIG) has priced a new issue of fixed rate, non-cumulative preferred stock. This is the 1st time AIG has been in the preferred marketplace in many years.
The coupon is 5.85% and the issue is investment grade with a rating of Baa3 from Moodys and BBB- from Standard and Poors.
The issue is 20 million shares with no over allotment shares.
The issue is non-cumulative in respect to dividends, but dividends will be qualified for lower taxes.
Shares will trade on the NYSE under the permanent ticker of AIG-A, but in the meantime will trade on the OTC Grey Market under temporary ticker AIGGZ.