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AIG Announces Amended Four-Year, $4 Billion Credit Facility

Posted on 08 Oct 2012 by Neilson

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AIGInsurance giant American International Group Inc. said Friday it has agreed on terms of an amended four-year, $4 billion credit facility.

Thirty-four banks took part in the facility, with units J.P. Morgan Securities and Citigroup Global Markets acting as leads.

It replaces two lines of credits totaling $4.5 billion that AIG entered into a year ago. AIG said the terms of the new facility are better and give it greater flexibility.

New York-based AIG nearly collapsed in 2008 after suffering massive losses and received $182.3 billion in federal aid, the biggest bailout of the financial crisis.

The Treasury Department has been selling its shares in AIG. As of September the government had cut its stake in the company to about 16 percent and no longer was its majority owner. The government originally held 53.4 percent of AIG.

Treasury and the Federal Reserve Bank of New York have recouped a total of $197.4 billion from AIG, according to the government. That's all of the original investment plus a profit of $15.1 billion.