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NEW YORK -- American International Group Inc. said on Wednesday that its offer to exchange up to $2.5 billion in debt achieved that goal by the offer's early participation period.
As a result, AIG said it won't be accepting any further notes tendered after the early period ended at the close of business on Tuesday. The offer had been set to expire on Nov. 22.
The bailed-out insurance company announced the exchange offer on Oct. 24 as part of an initiative to reduce debt costs and improve its financial flexibility.
AIG said the tenders received by the early participation date exceeded the $2.5 billion cap it had set on the offer.
Under the offer, AIG issued a list of five old bonds denominated in euros, British pounds and dollars that it offered to exchange for new notes.
AIG said it accepted for exchange 100 percent of the tendered amounts for three of the five series of notes. Those tendered amounts are:
_ Nearly 591 million euros ($814 million) outstanding of 4.875 percent euro notes for new notes due 2017.
_ Nearly 440.2 million British pounds ($707.2 million) outstanding of 5.75 percent sterling notes for new notes due in 2017.
_ $312.4 million of 6.25 percent notes for new notes due 2037.
Under a priority system for notes covered under the offer, AIG accepted 53.6 percent of the notes tendered for another series. The tender acceptance total was 669.9 million British pounds ($1.12 billion) outstanding of 8.625 percent sterling notes for new notes due in 2017.
AIG did not accept for exchange any of the nearly $922.3 million in 8.175 percent notes that were tendered for new notes due 2037.
Shares of New York-based AIG fell 95 cents, or 4 percent, to $23.11 in late morning trading. Broader stock indexes were down about 2 percent.