American International Group, a provider of life insurance and retirement services in the US, had entered into two new Bank Credit Facilities totaling $4.5bn, including a 4-Year $3bn and a 364-Day $1.5bn Bank Credit Facility.
According to insurer, the new facilities replace the existing $3.182bn AIG facilities (evenly divided between a 3-Year facility and a 364-Day facility) and the $1.3bn 364-Day Letter of Credit facility for Chartis.
The new 4-Year facility includes a $1.5bn Letter of Credit sub-limit for AIG subsidiaries, including Chartis, to obtain Letters of Credit, according to company.
Thirty-four banks participated in the facilities, with JP Morgan Securities and Citigroup Global Markets acting as lead arrangers on both facilities.
AIG’s chief financial officer David Herzog said these new credit facilities provide AIG and the subsidiaries with financial flexibility on more favorable terms.
"These facilities also greatly simplify and consolidate AIG’s existing Credit Facility structure and provide AIG subsidiaries greater flexibility with respect to their Letter of Credit needs," Herzog said.