NU Online News Service, July 15, 2:02 p.m.EDT

American International Group's mortgage subsidiary, AmericanGeneral Finance Corp., reported it will get close to $1 billion forthe sale of its mortgage-backed certificates to Credit Suisse (USA)Inc.

In a Securities and Exchange Commission filing yesterday,American General said it sold off the securities with anapproximate certificate principal balance worth $1.6 billion toCredit Suisse in a private transaction.

The company said it expects net cash proceeds from thetransaction to be between $925 million and $975 million. The amountwill depend on the final size of the mortgage pool and deductionfor expenses.

The transaction is expected to close on or about July 30.

The company said it would use the proceeds to support itsliquidity position and funding needs, "including the discharge ofapproximately $313 million of debt security obligations" that comedue during this year.

The securities are not registered with the SEC and cannot beoffered or sold in the United States unless they are registered,the filing said.

In another filing, American General reported a net loss of $241million for the first quarter of this year compared to a net lossof $31 million in 2008. The company said the losses were the resultof the recession and difficulties in the credit markets.

According to American General's Web site, the company wasacquired by AIG in 2001.