AIG - American International Group Inc.
09/27/2024 | Press release | Distributed by Public on 09/27/2024 14:45
Financial Obligation Form 8 K
Item 1.01. Entry into a Material Definitive Agreement.
On September 27, 2024, American International Group, Inc. ("AIG" or the "Company") entered into the Amended and Restated Credit Agreement (the "Amended Credit Agreement") by and among AIG, the subsidiary borrowers party thereto, the lenders party thereto and Bank of America, N.A. ("Bank of America"), as Administrative Agent and the Several L/C Agent, which amends and restates AIG's Credit Agreement, dated as of November 19, 2021, among AIG, the subsidiary borrowers party thereto, the lenders party thereto, Bank of America, as Administrative Agent, and each Several L/C Agent party thereto.
The Amended Credit Agreement provides for a five-year total commitment of $3 billion, consisting of standby letters of credit and/or revolving credit borrowings without any limits on the type of borrowings. Under circumstances described in the Amended Credit Agreement, the aggregate commitments may be increased by up to $1.5 billion, for a total commitment under the Amended Credit Agreement of $4.5 billion. Under the Amended Credit Agreement, the applicable rate, commitment fee and letter of credit fee are determined by reference to the credit ratings of AIG's senior long-term unsecured debt. Borrowings bear interest at a rate per annum equal to (i) in the case of U.S. dollar borrowings, Term SOFR plus an applicable credit spread adjustment plus an applicable rate or an alternative base rate plus an applicable rate, (ii) in the case of Sterling borrowings, SONIA plus an applicable rate, (iii) in the case of Euro borrowings, EURIBOR plus an applicable rate and (iv) in the case of Japanese Yen, TIBOR plus an applicable rate. The alternative base rate is equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) the rate of interest in effect as publicly announced from time to time by Bank of America as its "prime rate" and (c) Term SOFR plus 0.100% plus 1.00%
The Amended Credit Agreement requires AIG to maintain a minimum consolidated net worth and subjects AIG to a specified limit on total consolidated debt to total consolidated capitalization, subject to certain limitations and exceptions. In addition, the Amended Credit Agreement contains certain customary affirmative and negative covenants, including limitations with respect to the incurrence of certain types of liens and certain fundamental changes. Amounts due under the Amended Credit Agreement may be accelerated upon an "event of default," as defined in the Amended Credit Agreement, such as failure to pay amounts owed thereunder when due, breach of a covenant, material inaccuracy of a representation, or occurrence of bankruptcy or insolvency, subject in some cases to cure periods.
AIG expects that it may draw on the Amended Credit Agreement from time to time, and may use the proceeds for general corporate purposes. Letters of credit issued under the Amended Credit Agreement will be used for general corporate purposes. As of September 27, 2024, there are no borrowings or letters of credit outstanding under the Amended Credit Agreement, so that a total of approximately $3 billion remains available under the Amended Credit Agreement. The foregoing description of the Amended Credit Agreement is qualified in its entirety by reference to the Amended Credit Agreement, a copy of which will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ending September 30, 2024.
Section 2 - Financial Information