EX-1.2 3 h82474ex1-2.txt PRICING AGREEMENT - DATED NOVEMBER 30, 2000 1 EXHIBIT 1.2 PRICING AGREEMENT SALOMON SMITH BARNEY INC. MERRILL LYNCH & CO. Merrill Lynch, Pierce, Fenner & Smith Incorporated MORGAN STANLEY & CO. INCORPORATED PRUDENTIAL SECURITIES INCORPORATED UBS WARBURG LLC BANC OF AMERICA SECURITIES LLC BANC ONE CAPITAL MARKETS, INC. FIRST UNION SECURITIES, INC., as Representatives of the several Underwriters named in Schedule I hereto c/o SALOMON SMITH BARNEY INC. 390 Greenwich Street New York, New York 10013 November 30, 2000 Ladies and Gentlemen: American General Capital III, a statutory business trust created under the laws of the State of Delaware (the "Trust"), and American General Corporation, a Texas corporation, as sponsor of the Trust and as guarantor (the "Company"), propose, subject to the terms and conditions stated herein and in the Underwriting Agreement (a form of which was filed as an exhibit to the registration statement filed by the Trust, certain other trusts and the Company on Form S-3 (Nos. 333-40583, 333-40583-01, 333-40583-02, 333-40583-03 and 333-40583-04)) attached hereto (the "Underwriting Agreement"), to issue and sell to the Underwriters named in Schedule I hereto (the "Underwriters") the number of Preferred Securities specified in Schedule I hereto. If so specified in Schedule II hereto, the Preferred Securities are exchangeable into Junior Subordinated Debentures of the Company or other property or securities specified in Schedule II hereto. The Preferred Securities will be guaranteed by the Company on a limited basis as to the payment of Distributions and as to payments on liquidation or redemption (the "Guarantee"). Each of the provisions of the Underwriting Agreement is incorporated herein by reference in its entirety, and shall be deemed to be a part of this Pricing Agreement to the same extent as if such provisions had been set forth in full herein; and each of the representations and warranties set forth therein shall be deemed to have been made at and as of the date of this Pricing Agreement, except that each representation and warranty which refers to the Prospectus in Section 1 of the Underwriting Agreement shall be deemed to be a representation or warranty as of the date of the Underwriting Agreement in relation to the Prospectus (as therein defined), 2 and also a representation and warranty as of the date of this Pricing Agreement in relation to the Prospectus as amended or supplemented with respect to the offering of the Preferred Securities. Each reference to the Representatives herein and in the provisions of the Underwriting Agreement so incorporated by reference shall be deemed to refer to you. Unless otherwise defined herein, terms defined in the Underwriting Agreement are used herein as therein defined. The Representative designated to act on behalf of the Representatives and on behalf of each of the Underwriters pursuant to Section 9 of the Underwriting Agreement and the address of the Representative referred to in such Section 9 are set forth in Section II hereto. An amendment to the Registration Statement, or a supplement to the Prospectus, as the case may be, relating to the offering of the Preferred Securities, in the form heretofore delivered to you, is now proposed to be filed with the Commission. Subject to the terms and conditions set forth herein and in the Underwriting Agreement incorporated herein by reference, the Trust agrees to issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase from the Trust, at the time and place and at the purchase price set forth in Schedule II hereto, the amount of Preferred Securities set forth opposite the name of such Underwriter in Schedule I hereto. If the foregoing is in accordance with your understanding, please sign and return to us one counterpart hereof for the Trust and one for the Company, one for each of the Representatives and one for each counsel, and upon acceptance hereof by you on behalf of each of the Underwriters, this letter and such acceptance hereof, including the provisions of the Underwriting Agreement incorporated herein by reference, shall constitute a binding agreement between each of the Underwriters and the Trust and the Company. It is understood that your acceptance of this letter on behalf of each of the Underwriters is or will be pursuant to the authority set forth in a form of Agreement Among Underwriters, the form of which shall be submitted to the Trust and the Company for examination, upon request, but without warranty on the part of the Representatives as to the authority of the signers thereof. [THIS SPACE INTENTIONALLY LEFT BLANK.] 2 3 Very truly yours, AMERICAN GENERAL CAPITAL III By: AMERICAN GENERAL CORPORATION, as sponsor By: /s/ C. JEFFREY GAY ----------------------------------------------- Name: C. Jeffrey Gay Title: Vice President and Assistant Treasurer AMERICAN GENERAL CORPORATION By: /s/ C. JEFFREY GAY ----------------------------------------------- Name: C. Jeffrey Gay Title: Vice President and Assistant Treasurer 3 4 Accepted as of the date hereof: SALOMON SMITH BARNEY INC. MERRILL LYNCH & CO. Merrill Lynch, Pierce, Fenner & Smith Incorporated MORGAN STANLEY & CO. INCORPORATED PRUDENTIAL SECURITIES INCORPORATED UBS WARBURG LLC BANC OF AMERICA SECURITIES LLC BANC ONE CAPITAL MARKETS, INC. FIRST UNION CAPITAL MARKETS CORP., as Representatives of the several Underwriters By: SALOMON SMITH BARNEY INC. By: /s/ ANNE KRONENBERG ---------------------------------------------------------- Authorized Signatory On behalf of themselves and the other several Underwriters 4 5 SCHEDULE I
NUMBER OF PREFERRED SECURITIES TO UNDERWRITER BE PURCHASED ------------------------------------------------------------------------------------------- ----------------------- Salomon Smith Barney Inc................................................................... 605,000 Merrill Lynch, Pierce, Fenner & Smith Incorporated................................................................. 600,000 Morgan Stanley & Co. Incorporated.......................................................... 600,000 Prudential Securities Incorporated......................................................... 600,000 UBS Warburg LLC............................................................................ 600,000 Banc of America Securities LLC............................................................. 75,000 Banc One Capital Markets, Inc. ............................................................ 75,000 First Union Securities, Inc................................................................ 75,000 ABN AMRO Incorporated...................................................................... 30,000 Bear Stearns & Co. Inc..................................................................... 30,000 Charles Schwab & Co. Inc................................................................... 30,000 Chase Securities Inc....................................................................... 30,000 CIBC World Markets Corp.................................................................... 30,000 Credit Suisse First Boston Corporation..................................................... 30,000 Dain Rauscher Wessels, a division of Dain Rauscher Incorporated............................ 30,000 Fifth Third Securities..................................................................... 30,000 Fleet Securities Inc....................................................................... 30,000 H&R Block, Inc............................................................................. 30,000 J.P. Morgan Securities Inc................................................................. 30,000 McDonald Investments Inc................................................................... 30,000 NatCity Investments, Inc................................................................... 30,000 Raymond James & Associates, Inc............................................................ 30,000 Robert W. Baird & Co. Incorporated......................................................... 30,000 The Robinson-Humphrey Company, LLC......................................................... 30,000 Suntrust Equitable Securities Corp......................................................... 30,000 U.S. Bancorp Piper Jaffray Inc............................................................. 30,000 Wachovia Securities, Inc................................................................... 30,000 Advest, Inc................................................................................ 10,000 BB&T Capital Markets, a Division of Scott & Stringfellow................................... 10,000 C.L. King & Associates, Inc................................................................ 10,000 D.A. Davidson & Co. Incorporated........................................................... 10,000 Davenport & Company LLC.................................................................... 10,000 Fahnestock & Co. Inc....................................................................... 10,000 Gibraltar Securities Co.................................................................... 10,000 Gruntal & Co., L.L.C....................................................................... 10,000 J.J.B. Hilliard, W.L. Lyons, Inc........................................................... 10,000 Janney Montgomery Scott Inc................................................................ 10,000 Legg Mason Wood Walker, Incorporated....................................................... 10,000 Mesirow Financial, Inc..................................................................... 10,000 Morgan Keegan & Company, Inc............................................................... 10,000 Stephens Inc............................................................................... 10,000 Stifel, Nicolaus & Co., Inc. .............................................................. 10,000 TD Securities (USA) Inc.................................................................... 10,000 Tucker Anthony Inc......................................................................... 10,000 Utendahl Capital Partners, L.P............................................................. 10,000 Wedbush Morgan Securities, Inc............................................................. 10,000 William Blair & Company, L.L.C............................................................. 10,000 ------------------------- Total......................................................... 4,000,000 =========================
I-1 6 SCHEDULE II PREFERRED SECURITIES Title of Preferred Securities: 8.05% Trust Preferred Securities ("TruPS") Number of Preferred Securities: 4,000,000 Distribution Payments: Quarterly, on March 31, June 30, September 30 and December 31 of each year, commencing December 31, 2000, at an annual rate of 8.05% of the liquidation amount of $25.00 per Preferred Security. Record Dates: As long as the Preferred Securities are represented by a global security, the record date for the payment of distributions will be one business day before the relevant payment date. If the Preferred Securities are ever issued in certificated form, the record date for the payment of distributions will be the 15th day of the last month of each quarterly distribution period, even if that day is not a business day. Liquidation Amount: $25.00 per Preferred Security, plus accumulated and unpaid distributions to the date of payment. Exchange Provisions: If the Company, as the sponsor of the Trust, exercises its right to dissolve the Trust at any time, the Trust will be liquidated by distribution of the Junior Subordinated Debentures to holders of the Preferred Securities and the Common Securities. Redemption Provisions: Redeemable when the Junior Subordinated Debentures are paid, either at maturity on December 31, 2049, or upon early redemption as described in the Prospectus Supplement. Initial Offering Price to Public: $25.00 per Preferred Security, plus accumulated distributions from December 7, 2000, if settlement occurs after that date. Purchase Price by Underwriters: $25.00 per Preferred Security, plus accumulated distributions from December 7, 2000, if settlement occurs after that date. Underwriters' Compensation: $0.7875 per Preferred Security. II-1 7 Method of and Specified Funds for Payment of Purchase Price and Underwriters' Compensation: By wire transfer to bank accounts specified by the Trust and the Representatives in same day funds. Form of Preferred Securities: Book-entry-only form represented by one or more global securities deposited with The Depository Trust Company ("DTC") or its designated custodian, to be made available for checking by the Representatives at least 24 hours prior to the Time of Delivery at the office of DTC. Securities Exchange: New York Stock Exchange. Time of Delivery: 10:00 a.m. (New York City time), December 7, 2000. Closing Location: Brown & Wood LLP One World Trade Center New York, New York 10048 Representatives: Salomon Smith Barney Inc. Merrill Lynch, Pierce, Fenner & Smith Incorporated Morgan Stanley & Co. Incorporated Prudential Securities Incorporated UBS Warburg LLC Banc of America Securities LLC Banc One Capital Markets, Inc. First Union Securities, Inc. Designated Representative: Salomon Smith Barney Inc. Address for Notices, etc.: Salomon Smith Barney Inc. 390 Greenwich Street New York, New York 10013 Attention: Peter Jurdjevic JUNIOR SUBORDINATED DEBENTURES Title of Junior Subordinated Debentures: 8.05% Junior Subordinated Debentures due 2049 Aggregate Principal Amount: $103,092,800 Interest Payments: Quarterly, on March 31, June 30, September 30 and December 31 of each year, commencing December 31, 2000, at an annual rate of 8.05% of the principal amount of $25 per Junior Subordinated Debenture. II-2 8 Record Dates: As long as the Preferred Securities (or, if the Junior Subordinated Debentures are distributed to the holders of the Preferred Securities, then the Junior Subordinated Debentures) are represented by a global security, the record date for the payment of interest on the Junior Subordinated Debentures will be one business day before the relevant payment date. If the Preferred Securities (or, if the Junior Subordinated Debentures are distributed to the holders of the Preferred Securities, then the Junior Subordinated Debentures) are ever issued in certificated form, the record date for the payment of interest will be the 15th day of the last month of each quarterly interest period, even if that day is not a business day. Maturity Date: December 31, 2049 Redemption Provisions: Redeemable at 100% of principal amount plus accrued and unpaid interest to the date of redemption (i) in whole or in part on one or more occasions any time on or after December 7, 2005; and (ii) in whole but not in part before December 7, 2005, if certain changes in tax or investment company law occur or will occur within 90 days. Sinking Fund Provisions: None. Extension Provisions: The Company may, on one or more occasions, defer interest payments on the Junior Subordinated Debentures for up to 20 consecutive quarterly periods (but not beyond December 31, 2049) unless an event of default under the Junior Subordinated Debentures has occurred and is continuing. II-3