AIG (NYSE:AIG) received a $4.3 billion credit facility, moving it one step closer to government independence as it continues to repay a multi-billion-dollar loan to the U.S. government.
Thirty-six banks helped prepare the loans, a 364-day and 3-year bank credit facility with a total value of $3 billion. Chartis, the company's property and casualty insurance business, has received a one-year, $1.3 billion facility.
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"This success is another important vote of confidence by the market in AIG," said the company’s chief executive, Robert Benmosche.
The move builds on momentum earlier this year where AIG raised $2 billion selling senior unsecured notes and established a $500 million contingent liquidity facility earlier this month after a more than two-year hiatus from the those markets.
The credit facility will be available upon the closing of its previously announced recapitalization plan.
“We can see the finish line,” Benmosche said, noting the plan is close to completion, and added that the company has made "substantial and impressive progress this year."
AIG had to be bailed out after suffering significant losses in late 2008 from selling insurance-like protection against losses on mortgage bonds and other risky investments. The investments fell in value and AIG, unable to cover the costs, had to seek help from the government.
In total, the insurer owed the Federal Reserve and Treasury some $182 billion.