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PRICING SUPPLEMENT NO. AIG-FP-25
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FILED PURSUANT TO RULE 424(b)(2) |
DATED JULY 19, 2007
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REGISTRATION NOS. 333-106040; 333-143992 |
TO PROSPECTUS DATED JULY 13, 2007 |
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AND PROSPECTUS SUPPLEMENT DATED JULY 13, 2007 |
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AMERICAN INTERNATIONAL GROUP, INC.
MEDIUM-TERM NOTES, SERIES AIG-FP,
US DOLLAR ZERO COUPON ACCRETING NOTES DUE JULY 2, 2019
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Principal Amount: U.S.$20,000,000
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Issue Date: July 24, 2007 |
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Agents Discount or Commission: U.S.$5,000
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Maturity Date: July 2, 2019 |
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Net Proceeds to Issuer: U.S.$10,138,725.82
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Interest Rate: 0.00% |
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Form: þ Book Entry o Certificated
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CUSIP No.: 02687QCG1 |
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Specified Currency (If other than U.S. dollars): N/A
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Authorized Denominations
(If other than U.S.$1,000
and integral multiples of
U.S.$1,000 in excess
thereof): N/A |
The notes are being placed through or purchased by the Agents listed below:
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Agent
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Principal Amount |
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Credit Suisse Securities (USA) LLC
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U.S.$20,000,000
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Capacity:
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o Agent
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þ Principal |
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If as Agent:
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The notes are being offered at a fixed initial public offering price of ___% of principal amount. |
If as Principal:
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o The notes are being offered at varying prices related to prevailing market prices at the
time of resale. |
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þ The notes are being offered at a fixed initial public offering price of 50.7186291% of
principal amount. |
Payment at Maturity:
On the Maturity Date, Issuer will pay to the Holder $20,000,000. If the Maturity Date is not
a New York business day, such sum will be payable on the following New York business day (without
any interest or other payment in respect of such delay).
Events of Default and Acceleration:
In case an Event of Default with respect to the notes has occurred and is continuing, the
aggregate amount payable to holders of notes, upon any acceleration permitted by the notes, will be
equal to the Aggregate Accreted Value as of the most recent Calculation Date listed below, plus an
amount equal to interest on such amount calculated at the rate of 5.7675% per annum for the period
from such most recent Calculation Date, calculated on the basis of a 360 day year comprising 12
30-day months.
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Calculation Date |
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Aggregate Accreted Value
USD |
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Calculation Date |
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Aggregate Accreted Value
USD |
July 24, 2007 |
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10,143,725.82 |
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January 2, 2014 |
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14,629,024.12 |
January 2, 2008 |
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10,400,493.11 |
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July 2, 2014 |
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15,050,888.60 |
July 2, 2008 |
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10,700,417.33 |
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January 2, 2015 |
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15,484,918.60 |
January 2, 2009 |
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11,008,990.61 |
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July 2, 2015 |
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15,931,464.94 |
July 2, 2009 |
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11,326,462.38 |
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January 2, 2016 |
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16,390,888.56 |
January 2, 2010 |
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11,653,089.24 |
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July 2, 2016 |
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16,863,560.81 |
July 2, 2010 |
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11,989,135.20 |
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January 2, 2017 |
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17,349,863.75 |
January 2, 2011 |
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12,334,871.89 |
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July 2, 2017 |
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17,850,190.45 |
July 2, 2011 |
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12,690,578.76 |
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January 2, 2018 |
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18,364,945.32 |
January 2, 2012 |
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13,056,543.32 |
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July 2, 2018 |
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18,894,544.43 |
July 2, 2012 |
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13,433,061.39 |
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January 2, 2019 |
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19,439,415.85 |
January 2, 2013 |
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13,820,437.30 |
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July 2, 2019 |
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20,000,000.00 |
July 2, 2013 |
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14,218,984.16 |
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In case of default in payment of the notes, whether on the Maturity Date or upon
acceleration, from and after that date, the notes will bear interest, payable upon demand of their
holders, at the rate equal to 5.7675% per annum, to the extent that payment of interest is legally
enforceable on the unpaid amount due and payable on that date in accordance with the terms of the
notes, to the date payment of that amount has been made or duly provided for.
Other Provisions:
These notes have been issued with Original Issue Discount (OID), as defined by Section 1273
of the Internal Revenue Code of 1986, as amended. The amount of OID on each note is $492.81. The
issue date of the notes is July 24, 2007. The yield to maturity on the notes is 5.7675%.
Calculation Agent: AIG Financial Products Corp.
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 should refer to the discussion under United States Taxation in the
accompanying prospectus supplement for more information on OID and 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 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, 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., 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., Lehman Brothers Inc., McDonald Investments Inc., Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Mitsubishi UFJ Securities International plc, Morgan Stanley & Co.
Incorporated, 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.