AIG draws $4.16B from Treasury

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Related Companies American International Group (AIG) International Lease Fin Corp.

Related Documents 10-Q American International Group 9/30/2009, filed on 11/6/2009

Related Articles 10/19/2009 ILFC borrows $2B from AIG, uses proceeds to pay down credit agreement 10/14/2009 Udvar-Hazy may buy part of ILFC, but aircraft leasing industry still needs shakeup 4/21/2009 Treasury deducts controversial bonus payments from latest AIG bailout

American International Group Inc. pulled approximately $2.06 billion from a $29.84 billion facility with the U.S. Treasury Department during the third quarter and will draw down an additional about $2.1 billion, the company disclosed in a Form 10-Q filed Nov. 6.

AIG said that on Nov. 6, it filed a notice of an approximately $2.1 billion drawdown, primarily for buying common shares of unit International Lease Finance Corp., the aircraft business that AIG is reportedly looking to sell.

AIG expects to receive those funds Nov. 13.

Meanwhile, the filing also showed that AIG drew down $2.06 billion from the Treasury on Aug. 13, which it said it used for restructuring transactions at its United Guaranty mortgage insurance unit and for the pending intercompany purchase of ILFC common shares.

Both drawdowns came from a $29.84 billion facility from the Treasury offered earlier in the year. Under the agreement, the Treasury committed to provide AIG with funds in exchange for increases in the liquidation preference of AIG's series F fixed-rate noncumulative perpetual preferred stock, par value $5.00 per share.

As of Sept. 30, AIG had about $26.63 billion in funds available under the Treasury's commitment.