Close Close

Financial Planning > College Planning > Student Loan Debt

Fortress Makes Deal for AIG Finance Unit

Your article was successfully shared with the contacts you provided.

An investment management firm has arranged for funds and affiliates to buy 80% of American General Finance Inc. from American International Group Inc. (NYSE:AIG).

Fortress Investment Group L.L.C., New York (NYSE:FIG), hopes to close on the deal by March 31, 2011, according to AIG, New York, and Fortress.

AIG says it expects to record a $1.9 billion loss on the deal, eliminate $17 billion in debt from its balance sheet, and emerge with a 20% stake in the finance company.

American General Finance, Evansville, Ind., was founded in 1920. It sells loans, retail financing and other credit-related services in the United States and the United Kingdom.

Fortress, a hedge fund with $42 billion in assets that went public in 2006, believes American General Finance is a good company doing business in an underserved market, according to Fortress Co-Chairman Wesley Edens.

Fitch Ratings, Chicago, says the deal should help AIG reduce its ratio of debt to capital to 50%, from 57%.



© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.