AIG 2013 Annual Report Download - page 306

amendments to each of those Original RCCs that deleted all of the covenants that restricted our ability to repay,
redeem or purchase the applicable series of the junior subordinated debentures.
We also entered into new replacement capital covenants (the New RCCs) for the initial benefit of the holders of the
Subordinated Notes, in connection with our 5.75% Series A-2 Junior Subordinated Debentures and our 4.875%
Series A-3 Junior Subordinated Debentures. We covenanted in each New RCC that, subject to certain exceptions,
we would not repay, redeem or purchase, and that none of our subsidiaries would purchase, the applicable series of
junior subordinated debentures prior to the scheduled termination date of that New RCC, unless since the date
360 days prior to the date of that repayment, redemption or purchase, we have received a specified amount of net
cash proceeds from the sale of common stock or certain other qualifying securities that have certain characteristics
that are at least as equity-like as the applicable characteristics of the applicable series of junior subordinated
debentures, or we or our subsidiaries have issued a specified amount of common stock in connection with the
conversion or exchange of certain convertible or exchangeable securities. In the first quarter of 2013, our obligations
under the new RCCs were effectively terminated because one of the termination provisions set forth in the new
RCCs was triggered when it was determined that neither series of junior subordinated debentures received equity
credit any longer for rating agency purposes.
In 2013, we redeemed $1.1 billion aggregate principal amount of our 7.70% Series A-5 Junior Subordinated
Debentures and $750 million aggregate principal amount of our 6.45% Series A-4 Junior Subordinated Debentures,
in each case for a redemption price of 100 percent of the principal amount, plus accrued and unpaid interest.
In connection with our acquisition of AIG Life Holdings, Inc. (AIGLH) in 2001, we entered into arrangements with
AIGLH with respect to outstanding AIGLH capital securities. In 1996, AIGLH issued capital securities through a trust
to institutional investors and funded the trust with AIGLH junior subordinated debentures issued to the trust with the
same terms as the capital securities. AIG Parent guaranteed the debentures pursuant to a guarantee that is
expressly subordinated to certain AIGLH senior debt securities. Under the AIG Parent guarantee, AIG Parent was not
required to make any payments in respect of the debentures if such payment would be prohibited by the
subordination provisions of the debentures. As a result, AIG Parent would never be required to make a payment
under its guarantee of the debentures for so long as AIGLH was prohibited from making a payment on the
debentures.
On July 11, 2013, the AIGLH junior subordinated debentures were distributed to holders of the capital securities, the
capital securities were cancelled and the trusts were dissolved. At December 31, 2013, the junior subordinated
debentures outstanding consisted of $300 million of 8.5 percent junior subordinated debentures due July 2030,
$500 million of 8.125 percent junior subordinated debentures due March 2046 and $500 million of 7.57 percent junior
subordinated debentures due December 2045, each guaranteed by AIG Parent as described above.
The four-year syndicated credit facility that we entered into on October 5, 2012 (the Four-Year Facility) provides for
$4.0 billion of unsecured revolving loans, which includes a $2.0 billion letter of credit sublimit. As of December 31,
2013, a total of approximately $3.9 billion remains available under the Four-Year Facility, of which approximately
$1.9 billion remains available for letters of credit. We expect that we may draw down on the Four-Year Facility from
time to time, and may use the proceeds for general corporate purposes. The Four Year Facility also provides for the
issuance of letters of credit. The Four-Year Facility is summarized in the following table.
Four-Year Syndicated Credit Facility $ 4,000 $ 3,947 October 2016 10/5/2012
AIGLH Junior Subordinated Debentures (Formerly, Liabilities Connected To Trust Preferred Stock)
Credit Facilities
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AIG 2013 Form 10-K288
ITEM 8 / NOTE 14. DEBT
At December 31, 2013 Available Effective
(in millions) Size Amount Expiration Date
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