NU Online News Service, July 15, 2:02 p.m. EDT
American International Group's mortgage subsidiary, American General Finance Corp., reported it will get close to $1 billion for the 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 an approximate certificate principal balance worth $1.6 billion to Credit Suisse in a private transaction.
The company said it expects net cash proceeds from the transaction to be between $925 million and $975 million. The amount will depend on the final size of the mortgage pool and deduction for expenses.
The transaction is expected to close on or about July 30.
The company said it would use the proceeds to support its liquidity position and funding needs, "including the discharge of approximately $313 million of debt security obligations" that come due during this year.
The securities are not registered with the SEC and cannot be offered or sold in the United States unless they are registered, the filing said.
In another filing, American General reported a net loss of $241 million for the first quarter of this year compared to a net loss of $31 million in 2008. The company said the losses were the result of the recession and difficulties in the credit markets.
According to American General's Web site, the company was acquired by AIG in 2001.
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