AIG 2009 Annual Report Download - page 52

American International Group, Inc., and Subsidiaries
the AIA and ALICO transactions on December 1, 2009, there was a $25 billion reduction in the outstanding balance
of the FRBNY Credit Facility and the maximum amount available to be borrowed thereunder. The net borrowings as
of December 31, 2009 and February 17, 2010 were reduced by $1.6 billion of loans extended from AGF to AIG. AIG
expects that these loans will be repaid to support AGF’s liquidity as needed. Net borrowings under the FRBNY Credit
Facility increased by approximately $3.1 billion from December 31, 2009 to February 17, 2010, with these proceeds
primarily used to repay $3.5 billion of commercial paper outstanding under the FRBNY Commercial Paper Funding
Facility (CPFF) for AIG Funding and Curzon Funding LLC.
The following table summarizes net borrowings outstanding and remaining available amount that can be borrowed
under the FRBNY Credit Facility:
Inception Through
December 31, December 31, Increase
2009 2008 (Decrease)
Net borrowings:
Loans to AIGFP for collateral postings, GIA and other debt maturities $ 50,605 $ 46,997 $ 3,608
AIGFP repayments to AIG (8,903) (4,093) (4,810)
Capital contributions and loans to insurance companies(a) 23,329 20,850 2,479
Repayment of obligations to securities lending program 3,160 3,160 —
Repayment of intercompany loans 1,528 1,528 —
Contributions to AIGCFG subsidiaries(b) 222 1,672 (1,450)
Loans to ILFC 3,900 — 3,900
Debt payments 5,448 2,109 3,339
Issuance of preferred interests in AIA LLC and ALICO LLC (25,000) — (25,000)
Funding of equity interest in ML III 5,000 5,000 —
Repayment from the proceeds of the issuance of AIG Series D Preferred Stock
and common stock warrant (40,000) (40,000) —
Other(c) (1,389) (423) (966)
Net borrowings 17,900 36,800 (18,900)
Total FRBNY Credit Facility 35,000 60,000 (25,000)
Remaining available amount 17,100 23,200 (6,100)
Net borrowings 17,900 36,800 (18,900)
Accrued compounding interest and fees(d) 5,535 3,631 1,904
Total balance outstanding $ 23,435 $ 40,431 $(16,996)
(a) Includes securities lending activities.
(b) Includes repayments and sales of subsidiaries.
(c) Includes repayments with proceeds from the CPFF, tax refunds, loans from AGF to AIG discussed above and drawdowns under the Department of
the Treasury Commitment, which had not yet been utilized.
(d) Excludes interest payable of $2 million and $8 million at December 31, 2009 and 2008, respectively, which was included in Other liabilities.
Department of the Treasury Commitment
The Department of the Treasury Commitment allows AIG to draw down funds in exchange for increases in the
liquidation preference of the AIG Series F Preferred Stock. See Note 16 to the Consolidated Financial Statements for
further discussion.
AIG 2009 Form 10-K 44