AIG offers to buy back up to $1.25B in bonds
AIG, the formerly bailed out insurer, offers to buy back $1.25B in bonds as a way to trim debt
NEW YORK (AP) -- AIG said Tuesday that it wants to buy back up to $1.25 billion of its bonds in a move to cut down its debt.
The insurer is making a "tender offer," meaning it will pay to buy back bonds from any bondholders who hold a certain class of bonds and are willing to sell.
American International Group Inc. was bailed out by the government in the depths of the financial crisis, making it a lightning rod for critics who thought the government was propping up banks at the expense of individuals. AIG sold off assets to pay back the bailout, and in December freed itself from the last of its Treasury ownership. Tuesday's announcement is the latest sign that it is also interested in trimming its debt.
Credit Suisse Securities (USA) LLC, J.P. Morgan and Morgan Stanley are serving as joint lead dealer managers of the offer.
Shares of the New York company rose 25 cents to close at $38.60 on Tuesday.
