Now that the dividend in >$.67 annually, these adjustments are going to be happening every quarter….. both the strike price will be reduced and the number of shares they are convertible into will be increased.
AIG Announces Adjustments to Warrant Exercise Price and Shares Receivable upon Warrant Exercise NEW YORK–(BUSINESS WIRE)–Dec. 3, 2015– American International Group, Inc. (NYSE:AIG) today announced that in accordance with the terms of the outstanding warrants (CUSIP number 026874156) (the “Warrants”) to purchase shares of AIG Common Stock, par value$2.50 per share, the Warrant exercise price will be reduced to $44.9036 per share from$45.00 per share and the number of shares of AIG Common Stock receivable upon Warrant exercise will increase to 1.002 from 1.000. Each of these adjustments will be effective at the close of business on December 7, 2015. Any Warrant exercised on or prior to December 7, 2015 will not be entitled to these adjustments.
These adjustments resulted from the declaration by the Board of Directors of AIG onNovember 2, 2015 of a dividend of $0.28 per share on AIG Common Stock. The dividend is payable on December 21, 2015, to stockholders of record at the close of business onDecember 7, 2015.
Further information on the Warrants and the adjustments to the Warrant exercise price and number of shares of AIG Common Stock receivable upon Warrant exercise, including the U.S. Federal income tax treatment of these adjustments, will be available in the Investors section of AIG’s website.