AIG Announces Pricing Of Sale Of Shares Of Arch Capital - Quick Facts

(RTTNews) - American International Group Inc. (AIG) said that it has priced the sale through an underwritten public offering of 6.38 million common shares of Arch Capital Group Ltd. issued upon conversion of 638,141 Convertible Preferred Shares of Arch received by AIG in connection with the sale of United Guaranty Corporation to Arch in 2016.

Closing of the offering is scheduled for June 14, 2017, and is subject to customary closing conditions.

AIG noted that it will receive gross proceeds of approximately $590 million, based upon a price of $92.50 per share.

In connection with the underwritten public offering, AIG has granted the underwriters a 30-day option to purchase an additional 957,210 common shares of Arch issuable upon conversion of 95,721 additional Convertible Preferred Shares held by AIG. Should the underwriters exercise their option in full, AIG would receive additional proceeds of approximately $89 million and would continue to own 542,420 Convertible Preferred Shares.

AIG's remaining stake is subject to a lock-up that will expire on January 15, 2018.