NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (AIG) announced today it had entered into 364-Day and 3-Year Bank Credit Facilities totaling $3 billion split evenly between the two. AIG also announced that Chartis has entered into a 1-Year $1.3 billion Letter of Credit Facility. Thirty-Six banks participated in the facilities. The facilities will be available upon the closing of the previously announced recapitalization plan with the United States Department of the Treasury, the Federal Reserve Bank of New York and the AIG Credit Facility Trust.
The signing of the AIG and Chartis facilities follows AIG’s successful return to the debt market earlier this month, at which time AIG raised $2 billion selling senior unsecured notes and also established a $500 million contingent liquidity facility after more than a two-year absence from these markets.
“This success is another important vote of confidence by the market in AIG,” said AIG Chief Executive Officer Robert Benmosche. “These credit facilities, combined with the debt offering and contingent liquidity facility, demonstrate that AIG has momentum and has made substantial and impressive progress this year.
“As we approach year’s end, we believe we are close enough to completing our recapitalization plan that we can see the finish line,” Mr. Benmosche said.
In addition to today’s announcement, over the last six months AIG achieved the following milestones:
- Sold an aggregate of $2.0 billion in debt, including $500 million in three-year notes and $1.5 billion in 10-year notes on December 2.
- Established a $500 million contingent liquidity facility on December 15.
- Raised $37 billion through the ALICO sale and AIA initial public offering earlier this fall.
- Entered an agreement to sell its AIG Star and AIG Edison life insurance companies for $4.3 billion on September 30.
- On September 30, announced AIG’s recapitalization plan to repay the Federal Reserve Bank of New York in full, facilitate the government’s ultimate exit from AIG, and repay the American taxpayer.
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American International Group, Inc. (AIG) is a leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.
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