AIG 2012 Annual Report Download - page 139

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On February 19, 2013, AIG commenced cash tender offers for (i) our 8.625% Series A-8 Junior Subordinated
Debentures and 8.000% Series A-7 Junior Subordinated Debentures for a purchase price of up to $325 million,
(ii) our 6.250% Series A-1 Junior Subordinated Debentures and 8.175% Series A-6 Junior Subordinated Debentures
for a purchase price of up to $650 million and (iii) the 81⁄2% Capital Trust Pass-Through Securities of American
General Capital II, the 7.57% Capital Securities, Series A of American General Institutional Capital A, the 81⁄8%
Capital Securities, Series B of American General Institutional Capital B and the 5.60% Senior Debentures due July
2097 of SunAmerica Inc. assumed by AIG, for a purchase price of up to $275 million, in each case plus accrued
interest or distributions through the settlement date. The offers are not cross-conditioned and AIG may complete all,
some or none of the tender offers. The offers are scheduled to expire on March 18, 2013 with an early participation
period through March 4, 2013, in each case subject to amendment and to extension in AIG’s sole discretion. The
purpose of the tender offers is to purchase certain outstanding debt issued or guaranteed by AIG and to reduce its
level of indebtedness and its interest expense.
See Liquidity and Capital Resources of AIG Parent and Subsidiaries – AIG Parent – Sources and Uses of Liquidity
and Capital Resources of AIG Parent herein for further discussion.
Analysis of Sources and Uses of Cash
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The following table presents selected data from AIG’s Consolidated Statement of Cash Flows:
Sources:
Net cash provided by (used in) operating activities – continuing operations $ (6,256) $ 6,161
Net cash provided by operating activities – discontinued operations 6,175 10,436
Net cash provided by changes in restricted cash 27,202 –
Net cash provided by other investing activities 9,246 17,114
Changes in policyholder contract balances 4,333 4,673
Issuance of other long-term debt 3,190 3,342
Federal Reserve Bank of New York credit facility borrowings – 19,900
Proceeds from drawdown on the Department of Treasury Commitment 20,292 2,199
Issuance of Common Stock 5,055 –
Net cash provided by other financing activities – –
Total sources 69,237 63,825
Uses:
Changes in restricted cash – (27,026)
Changes in policyholder contract balances – –
Repayments of other long-term debt (9,486) (7,986)
Federal Reserve Bank of New York credit facility repayments (14,622) (23,178)
Repayment of Department of Treasury SPV Preferred Interests (12,425) –
Repayment of Federal Reserve Bank of New York SPV Preferred Interests (26,432) –
Purchases of AIG Common Stock (70) –
Net cash used in other financing activities (6,761) (8,211)
Total uses (69,796) (66,401)
Effect of exchange rate changes on cash 29 39
Decrease in cash (530) (2,537)
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AIG 2012 Form 10-K122
Years Ended December 31,
(in millions) 2012 2011 2010
$ 748
2,928
695
15,917
–
4,844
–
–
–
4,194
29,326
–
(690)
(7,276)
–
(8,636)
–
(13,000)
–
(29,602)
16
(260)
ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES