Prudential Financial, Inc. has completed financing transactions to fund a portion of the purchase price for its acquisition of AIG Star Life Insurance Co., Ltd and AIG Edison Life Insurance Co. from American International Group, Inc.
The recently completed financing transactions by Prudential, Newark, N.J., consist of a public offering of 18.3 million shares of the company’s common stock and a public offering of $500 million of 4.50% 10-year senior notes, plus $500 million of 6.20% 30-year senior notes under the company’s medium-term notes, Series D program. The common stock and debt offerings resulted in aggregate proceeds to the company of approximately $2.0 billion.
Separately, AIG, New York, has extended an offer to exchange up to 74.5 million of its equity units consisting of corporate units for consideration per corporate unit equal to 0.09867 shares of its common stock plus $3.2702 in cash.
The exchange offer, which was begun on October 8 and was previously scheduled to expire at 11:59 p.m., EST, on November 17, will now expire at 11:59 p.m., EST, on November 23, unless further extended or earlier terminated by AIG. All other terms of the exchange offer remain the same, the company says.
As of 3 p.m., EST, on November 17 42.6 million corporate units had been validly tendered and not withdrawn.
AIG adds that BofA Merrill Lynch, Citi, Deutsche Bank Securities, J.P. Morgan, BNP PARIBAS, Credit Suisse, Morgan Stanley and UBS Investment Bank are acting as dealer managers for the exchange offer. Global Bondholder Services Corporation is acting as information and exchange agent for the exchange offer.