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August 24, 2010 Tuesday
AIG reduces credit line with NY Fed to about $30B
American International Group applied $3.95 billion to its revolving credit facility with the New York Fed, reducing the company’s outstanding principal balance to more than $15 billion, not including accumulated interest and fees.
American International Group Inc. said Aug. 23 that it has applied about $4 billion received from unit International Lease Finance Corp. to its revolving credit facility with the Federal Reserve Bank of New York. AIG’s outstanding principal balance is now slightly more than $15 billion, not including accumulated interest and fees. Additionally, the repayment of $3.95 billion reduces the size of the credit line available to AIG to about $30 billion from roughly $34 billion.“We still have more work to do, but we will finish the job and make sure we repay the American taxpayers,” President and CEO Robert Benmosche said in the news release.The New York-based insurer said that it expects the repayment to trigger an accelerated amortization of the prepaid commitment fee asset, resulting in a roughly $650 million pretax charge being taken by the company.
August 30, 2010