J.P. Morgan, Citi Arrange Amended AIG Facility
American International Group (AIG) announced it has entered into an amended and restated four-year, $4 billion bank credit facility. Thirty-four banks participated in the facility, with J.P. Morgan Securities and Citigroup Global Markets acting as lead arrangers.
The amended and restated facility replaces the previous $4.5 billion AIG facilities ($1.5 billion 364-Day and $3 billion four-year) entered into in October 2011 and includes a $2 billion letter of credit sublimit that will allow AIG subsidiaries to obtain letters of credit. This is an increase from the $1.5 billion letter of credit sublimit that existed in the previous four-year facility.
“The terms of this credit facility are more favorable and provide greater flexibility to AIG and our subsidiaries,” said David Herzog, AIG executive vice president and chief financial officer. “We again saw significant interest in the facility among the lender group, and we are pleased with the continued confidence they have in the strength of AIG and our future.”