AIG's exchange offer was part of efforts to reduce its overall debt levels. Last week AIG also unveiled a surprise $1 billion share buyback program aimed at supporting its stock price, which has languished since a stock offering in May.
On Monday, AIG Chief Executive Robert Benmosche said the insurer's priority is reducing the government's stake in the company. The government recently owned 77% of AIG after bailing out the company in 2008. That is down from 92% after the U.S. Treasury sold $5.8 billion of its holdings at $29 a share in a "re-IPO" earlier this year.
Shares were down 3.5% at $23.23 in early trading. The stock through Tuesday's close is down 50% this year.
AIG last month had offered to exchange several series of its junior subordinated debentures, denominated in euros, British pounds and U.S. dollars for new notes with a lower principal amount. All the notes tendered for the first three series by priority were accepted.
AIG said about €591 million ($817.6 million) of its €1 billion outstanding of 4.875% euro notes will be exchanged for about €421 of new 6.797% notes due 2017.
The company said £440.2 million ($708.4 million) of its £750 million of 5.750% sterling notes will be exchanged for £323.5 million new 6.765% notes due in 2017;
It said about $312.4 million of its $1 billion of 6.250% notes will be exchanged for $256.2 million new 6.820% notes due 2037;
The company accepted 54% of the £700 million tendered in its offer to exchange £900 million of it 8.625% sterling notes; and accepted none of the $922.3 million tendered in its offer to exchange $4 billion of 8.175% notes.