Business & Finance
Business and Finance
Business and Finance
Thu, October 13, 2011
Wed, October 12, 2011 AIG Announces $4.5 Billion of New Bank Credit Facilities
NEW YORK--([ BUSINESS WIRE ])--American International Group, Inc. (NYSE: AIG) announced today that it had entered into two new Bank Credit Facilities totaling $4.5 billion, including a 4-Year $3 billion Bank Credit Facility and a 364-Day $1.5 billion Bank Credit Facility.
"We are pleased with the broad, enthusiastic support and the confidence the lender group has in AIG, our business strategies and our future prospects. These facilities also greatly simplify and consolidate AIGa™s existing Credit Facility structure and provide AIG subsidiaries greater flexibility with respect to their Letter of Credit needs."
The new facilities replace the existing $3.182 billion AIG facilities (evenly divided between a 3-Year facility and a 364-Day facility) and the $1.3 billion 364-Day Letter of Credit facility for Chartis, each announced in December 2010. The new 4-Year facility includes a $1.5 billion Letter of Credit sub-limit for AIG subsidiaries, including Chartis, to obtain Letters of Credit.
aThese new credit facilities provide AIG and our subsidiaries with financial flexibility on more favorable terms,a said David Herzog, AIGa™s Chief Financial Officer. aWe are pleased with the broad, enthusiastic support and the confidence the lender group has in AIG, our business strategies and our future prospects. These facilities also greatly simplify and consolidate AIGa™s existing Credit Facility structure and provide AIG subsidiaries greater flexibility with respect to their Letter of Credit needs.a
Thirty-four banks participated in the facilities, with J.P. Morgan Securities LLC and Citigroup Global Markets Inc. acting as lead arrangers on both facilities.
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. 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.
