The insurer said in a Securities and Exchange Commission filing it plans to use $27 billion in proceeds from its initial public offering of AIA Group Ltd. and sale of American Life Insurance Co. to pay back the facility and other agreements.
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AIG also said it plans to raise up to $3 billion, and up to an additional $4 billion with the consent of the Treasury Department, by August in a registered primary offering to help recapitalize the company.
The Treasury, which already owns more than 80% of AIG, will be able to dictate terms and conditions of that and other offerings until the Treasury's stake in the insurer falls below 33%, AIG said.
Shares of AIG were halted at $42.23, down 4%, before the news broke.