424B2
 

PRICING SUPPLEMENT NO. AIG-FP-46A   FILED PURSUANT TO RULE 424(b)(2)
DATED DECEMBER 7, 2007   REGISTRATION NOS. 333-106040; 333-143992
TO PROSPECTUS DATED JULY 13, 2007    
AND PROSPECTUS SUPPLEMENT DATED JULY 13, 2007    
AMERICAN INTERNATIONAL GROUP, INC.
MEDIUM-TERM NOTES, SERIES AIG-FP,
FLOATING RATE LIBOR NOTES DUE NOVEMBER 27, 2047
     
Principal Amount: U.S.$32,038,000*
  Original Issue Date: December 12, 2007
 
   
Price to Public (Issue Price): U.S. $32,101,942.51 (Principal Amount plus Accrued Interest)
  Stated Maturity: November 27, 2047
 
   
Agents’ Discount or Commission: U.S. $320,380
  Interest Rate: 3 Month LIBOR - 25 bps
 
   
Net Proceeds to Issuer: U.S. $31,781,562.51 (U.S. $31,717,620 plus Accrued Interest)
  CUSIP No.: 02687QDC9
 
   
Form: þ Book Entry o Certificated
  Authorized Denominations: U.S.$1,000 and integral multiples of U.S.$1,000 in excess thereof.
 
   
Specified Currency (if other than U.S. dollars): N/A
   
The notes are being placed through or purchased by the Agents listed below:
                 
Agent   Principal Amount            
UBS Securities LLC
  U.S.$28,600,000   Capacity:   o Agent   þ Principal
Deutsche Bank Securities Inc.
  U.S.$3,438,000   Capacity:   o Agent   þ Principal
     
If as Agent:
  The notes are being offered at a fixed initial public offering price of ___% of principal amount.
If as Principal:
  o The notes are being offered at varying prices related to prevailing market prices at the time of resale.
 
  þ The notes are being offered at a fixed initial public offering price of 100% of principal amount plus Accrued Interest.
     
Initial Interest Rate:
  4.79% (equal to 3 Month LIBOR determined as of 11:00 a.m. London time on November 23, 2007, minus 25 basis points); the Initial Interest Rate is applied to the first calculation period that commences on and includes November 27, 2007 and ends on and excludes February 27, 2008
Interest Reset Dates:
  Quarterly on the 27th of each February, May, August, and November commencing on February 27, 2008
Interest Payment Dates:
  Quarterly on the 27th of each February, May, August, and November commencing on February 27, 2008
Regular Record Dates:
  15 calendar days prior to each Interest Payment Date
Accrued Interest:
  $63,942.51 (calculated at the Initial Interest Rate accruing for the portion of the first calculation period commencing on and including November 27, 2007 to but excluding the Original Issue Date of December 12, 2007)
                 
Spread (+/-): - 25 bps   INTEREST RATE BASIS OR BASES:
Spread Multiplier: N/A   o CD Rate
Maximum Interest Rate: N/A   o CMT Rate
Minimum Interest Rate: N/A       o CMT Reuters screen FRBCMT page
Index Maturity: 3 Months       o CMT Reuters screen FEDCMT page
 
              o One-Week Average Yield
INTEREST CALCULATION:           o One-Month Average Yield
þ Regular Floating Rate Note   o Commercial Paper Rate
o Floating Rate/Fixed Rate Note   o Eleventh District Cost of Funds Rate
    Fixed Rate Commencement Date:   o Federal Funds Open Rate
    Fixed Interest Rate:   o Federal Funds Rate
o Inverse Floating Rate Note   þ LIBOR
    Fixed Interest Rate:       þ Reuters screen LIBOR01 page
            o Reuters screen LIBO page
        o Prime Rate
        o Treasury Rate          o Other                     
 
*   The notes offered hereby are consolidated and form a single series with the $35,433,000 aggregate principal amount of American International Group, Inc., Medium-Term Notes, Series AIGFP, Floating Rate LIBOR Notes due November 27, 2047, issued on November 27, 2007.

 


 

Redemption at Option of Issuer:
The notes will be redeemable, in whole or in part, at the option of the Issuer, upon written notice of a minimum of 30 and a maximum of 60 calendar days, on each of the redemption dates and at the corresponding redemption prices (in each case expressed as a percentage of the principal amount) set forth in the following table, together with any accrued interest to the redemption date:
     
Redemption Date
  Redemption Price
November 27, 2037
  105.000%
November 27, 2038
  104.500%
November 27, 2039
  104.000%
November 27, 2040
  103.500%
November 27, 2041
  103.000%
November 27, 2042
  102.500%
November 27, 2043
  102.000%
November 27, 2044
  101.500%
November 27, 2045
  101.000%
November 27, 2046
  100.500%
Repayment at Option of Holder:
The notes will be repayable, in whole or in part, at the option of the holder, upon written notice of a minimum of 30 and a maximum of 60 calendar days, on each of the repayment dates and at the corresponding repayment prices (in each case expressed as a percentage of the principal amount) set forth in the following table, together with any accrued interest to the repayment date:
     
Repayment Date
  Repayment Price
November 27, 2008
  97.50%
November 27, 2009
  97.50%
November 27, 2010
  97.75%
November 27, 2011
  98.00%
November 27, 2012
  98.00%
November 27, 2013
  98.25%
November 27, 2014
  98.50%
November 27, 2015
  98.50%
November 27, 2016
  98.75%
November 27, 2017
  99.00%
November 27, 2018
  99.00%
November 27, 2019
  99.25%
November 27, 2020
  99.50%
November 27, 2021
  99.50%
November 27, 2022
  99.75%
November 27, 2023 and each November 27 thereafter to, and
  100.00%
including, maturity
   
In the event that a date in the tables above is not a Business Day, the repayment date will be the next succeeding Business Day.
If the option of the holder to elect repayment as described above is deemed to be a “tender offer” within the meaning of Rule 14e-1 under the Securities Exchange Act of 1934, as amended, we will comply with Rule 14e-1 as then in effect to the extent applicable.
     
Other Provisions:
   
 
   
Calculation Agent:
  AIG Financial Products Corp.

 


 

ERISA CONSIDERATIONS
The notes may not be purchased or held by any employee benefit plan or other plan or account that is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) or Section 4975 of the Code (each, a “plan”), or by any entity whose underlying assets include “plan assets” by reason of any plan’s investment in the entity (a “plan asset entity”), unless in each case the purchaser or holder is eligible for exemptive relief from the prohibited transaction rules of ERISA and Section 4975 of the Code under a prohibited transaction class exemption issued by the Department of Labor or another applicable statutory or administrative exemption. Each purchaser or holder of the notes will be deemed to represent that either (1) it is not a plan or plan asset entity and is not purchasing the notes on behalf of or with plan assets or (2) with respect to the purchase and holding, it is eligible for relief under a prohibited transaction class exemption or other applicable statutory or administrative exemption from the prohibited transaction rules of ERISA and Section 4975 of the Code. The foregoing supplements the discussion under ERISA Considerations in the base prospectus dated July 13, 2007.
USE OF PROCEEDS
We intend to lend the net proceeds from the sale of the notes to our subsidiary AIG Financial Products Corp. or certain of its subsidiaries for use for general corporate purposes.
CERTAIN U.S. FEDERAL INCOME TAX CONSEQUENCES
Prospective investors seeking to treat the notes as “qualified replacement property” for purposes of Section 1042 of the Internal Revenue Code of 1986, as amended, should be aware that Section 1042 requires the issuer to meet certain requirements in order for the notes to constitute qualified replacement property. In general, qualified replacement property is a security issued by a domestic operating corporation that did not, for the taxable year preceding the taxable year in which such security was purchased, have “passive investment income” in excess of 25 percent of the gross receipts of such corporation for such preceding taxable year (the “passive income test”). For purposes of the passive income test, where the issuing corporation is in control of one or more corporations or such issuing corporation is controlled by one or more corporations, all such corporations are treated as one corporation (the “affiliated group”) when computing the amount of passive investment income under Section 1042.
The Issuer believes that it is a domestic operating corporation and that less than 25 percent of its affiliated group’s gross receipts was passive investment income for the taxable year ending December 31, 2006. In making this determination, the Issuer has made certain assumptions and used procedures which it believes are reasonable. The Issuer cannot give any assurances as to whether it will continue to be a domestic operating corporation. It is, in addition, possible that the Internal Revenue Service may disagree with the Issuer’s determination of its status as domestic operating corporation or the manner in which the Issuer has calculated the affiliated group’s gross receipts (including the characterization thereof) and passive investment income and the conclusions reached herein. Furthermore, the Issuer is not providing any advice as to whether purchasing the notes will result in a valid Section 1042 transaction.
Notwithstanding that the final maturity of the notes is more than 30 years after the original issue date, prospective investors should refer to the discussion under “United States Taxation” in the accompanying prospectus supplement for a discussion of the other material consequences of owning the notes.
GENERAL INFORMATION
The information in this Pricing Supplement, other than the information regarding the initial public offering price, the net proceeds to the issuer, the identities of the initial purchasers or agents, the information under “ERISA Considerations” and under “Certain U.S. Federal Income Tax Consequences” above, and the following two paragraphs, will be incorporated by reference into the Global Security representing all the Medium-Term Notes, Series AIG-FP.
We are offering notes on a continuing basis through AIG Financial Securities Corp., ABN AMRO Incorporated, ANZ Securities, Inc., Banca IMI S.p.A., Banc of America Securities LLC, Barclays Capital Inc., Bear, Stearns & Co. Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., BNY Capital Markets, Inc., Calyon Securities (USA) Inc., CIBC World Markets. Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Daiwa Securities America Inc., Daiwa Securities SMBC Europe Limited, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Greenwich Capital Markets, Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc., Key Banc Capital Markets Inc., Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mitsubishi UFJ Securities International plc, Mizuho International plc, Mizuho Securities USA Inc., Morgan Stanley & Co. Incorporated, National Australia Capital Markets, LLC, RBC Capital Markets Corporation, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, TD Securities (USA) LLC, UBS Securities LLC, and Wachovia Capital Markets, LLC, as agents, each of which has agreed to use its best

 


 

efforts to solicit offers to purchase notes. We may also accept offers to purchase notes through other agents. See “Plan of Distribution” in the accompanying prospectus supplement.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the notes or determined if the prospectus, the prospectus supplement or this pricing supplement is truthful or complete. Any representation to the contrary is a criminal offense.