8-KMaterial AgreementsFinancial EventsExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Material Agreement (Jun 27, 2017)

Filed June 27, 2017For Securities:AIG

Summary

American International Group, Inc. (AIG) announced on June 27, 2017, the entry into a Fourth Amended and Restated Credit Agreement, which amends and restates its previous credit facility. This new agreement provides AIG with a five-year total commitment of $4.5 billion, which can be increased by up to $500 million under certain conditions, bringing the total potential commitment to $5.0 billion. The facility allows for standby letters of credit and/or revolving credit borrowings without specific limits on borrowing types. AIG expects to utilize these funds for general corporate purposes and to support the reinsurance operations of its insurance subsidiaries. As of the filing date, no borrowings or letters of credit were outstanding, meaning the full $4.5 billion was available.

Key Highlights

  • 1AIG entered into a Fourth Amended and Restated Credit Agreement on June 27, 2017.
  • 2The new credit facility has a total commitment of $4.5 billion, with an option to increase to $5.0 billion.
  • 3The agreement has a five-year term.
  • 4Funds can be used for general corporate purposes and to support reinsurance operations.
  • 5The facility allows for both standby letters of credit and revolving credit borrowings.
  • 6Interest rates are based on the adjusted LIBO rate or an alternative base rate, plus an applicable rate tied to AIG's credit ratings.
  • 7As of the filing date, the full $4.5 billion commitment was available with no outstanding borrowings or letters of credit.

Frequently Asked Questions

The primary purpose of the Fourth Amended and Restated Credit Agreement is to provide AIG with financial flexibility. The funds are intended for general corporate purposes and to support the reinsurance operations of its insurance subsidiaries, including the issuance of letters of credit.

The new credit facility provides a total commitment of $4.5 billion. Under specified conditions, this amount can be increased by up to $500 million, bringing the total potential commitment to $5.0 billion.

The Fourth Amended and Restated Credit Agreement has a five-year term.

No, as of June 27, 2017, there were no borrowings or letters of credit outstanding under the Fourth Amended and Restated Credit Agreement, meaning the entire $4.5 billion commitment was available for use.