AIG Stock Drops 3% After Share Offering, BofA Aids G&K Credit Facility
American International Group (NYSE:AIG): American International Group 206.7 million share spot secondary priced at $29.00. Citigroup, Credit Suisse and Morgan Stanley acted as joint book running managers for the offering. AIG overall option implied volatility of 36 is below its 26-week average of 43 according to Track Data, suggesting decreasing price movement into the Treasury planning to sell a $6B stake in the insurer.
Bank of America (NYSE:BAC): G&K Services (NASDAQ:GKSR) refinanced its unsecured revolving credit facility. The new five-year, $250M revolving credit facility replaces the company’s existing revolving credit facility, scheduled to expire on July 1. The prior credit facility had borrowings of $30M at the closing of refinancing. The new credit facility was provided by a syndicate of financial institutions and arranged by J.P. Morgan (NYSE:JPM), Wells Fargo (NYSE:WFC), and Bank of America Merrill Lynch (NYSE:BAC). The new facility, which will mature on March 7, 2017, bears interest between 1.0% to 2.0% over LIBOR, depending on the company’s leverage ratio. As of closing, the company’s borrowing rate will be reduced by one hundred basis points compared to the current rate under the previous facility. The revolving credit facility can be expanded by $150M.
Wells Fargo (NYSE:WFC): Fed officials are considering a new type of bond buying program that would address concerns about future inflation if they decide to take new steps to boost the economy in the months ahead, reports the Wall Street Journal.
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