JPMorgan and Citigroup are poised to reinforce their positions at the top of the global equity capital markets league tables as the joint bookrunners for insurer American International Group’s $7.5bn (€4.9bn) combined offering of common stock and convertible equity units and subordinated debt, Financial News reports.
According to Dealogic, Citigroup has been bookrunner for 65 deals worldwide with a total value of $22.4 billion, with JPMorgan second as bookrunner for 63 deals worth $18.2 billion.
In the US tables, Citigroup held the top spot as of Thursday with 32 deals worth a total value of $16.3 billion, while JPMorgan is seventh with 26 deals worth $6.6 billion.
AIG also said in a statement that it would grant Citigroup and JPMorgan “an option to purchase additional common stock and equity units in order to cover over-allotments.”
A spokesman for AIG declined to break down the amount of the $7.5 billion n issue that would be common stock and how much would be convertible securities, saying he could not elaborate on the terms in AIG’s statement.
AIG announced the offer after reporting a $7.81 billion net loss in the first quarter because of $9.11 billion in writedowns on credit default swaps it had sold to customers.
Credit default swaps are contracts that hedge against the default of a company’s bonds.