(Bloomberg) — American International Group Inc., the largest property-casualty insurer in the U.S. and Canada, announced a tender offer for as much as $1.5 billion of its bonds as Chief Financial Officer David Herzog seeks to cut debt.
The offer expires on July 10, New York-based AIG said today in a statement. It covers securities issued in dollars, pounds and euros, some with coupons of more than 8 percent.
AIG has been reducing debt to improve its standing with credit-rating firms and regulators as the company prepares for increased oversight from the Federal Reserve after its designation as a systemically important financial institution. About 40% of the insurer's debt is from 2007 and 2008 when the global credit crisis and the company's near collapse forced borrowing costs higher, Herzog said at a conference last month.
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