American International Group Inc. says the Federal Reserve may be able to use warrants to obtain up to 79.9% of the company’s stock.
AIG, New York, and officials at the Federal Reserve System previously had put out general descriptions of the $85 billion variable-rate revolving rate credit facility the Federal Reserve Bank of New York is providing for AIG.
Fed officials have given a little more information on the condition that they not be named.
In the Form 8-K filed today with the U.S. Securities and Exchange Commission, AIG describes the Fed deal as an “entry into a material definitive agreement.”
“AIG’s borrowings under the revolving credit facility bear interest, for each day, at a rate per annum equal to 3-month Libor plus 8.50%,” AIG says in the filing.