American International Group (AIG) is replacing their current $ 3.182 billion AIG facilities that were divided evenly between a year facility and a 364-Day facility along with a letter of credit facility for its subsidiary, Chartis, for $1.3 billion with two new facilities totaling $4.5 billion.
AIG Inc., (NYSE: AIG) announced the change on Oct 12. Thirty four banks participated in the process with Citigroup Global Markets Inc. and J.P. Morgan Securities LLC taking the lead in organizing both facilities.
The two new credit facilities include a four year $3 billion bank credit facility as well as a 364-day $1.5 billion Bank Credit Facility. The new four year facility also includes a $1.5 billion letter of credit sub-limit for AIG subsidiaries, such as Chartis, to obtain letters of credit.
In a statement, David Herzog, AIG’s Chief Financial Officer said, “These facilities greatly simplify and consolidate AIG’s existing credit facility structure and provide AIG subsidiaries greater flexibility with respect to their letter of credit needs.”