AIG 2015 Annual Report Download - page 162

ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES
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Credit Facilities
We maintain a committed, revolving syndicated credit facility as a potential source of liquidity for general corporate purposes.
On November 5, 2015, we amended and restated the five-year syndicated credit facility that was entered into on June 19,
2014 (the Previous Facility). The amended and restated five-year syndicated facility (the Five-Year Facility) provides for
aggregate commitments by the bank syndicate to provide unsecured revolving loans and/or standby letters of credit of up to
$4.5 billion (increased from a $4.0 billion commitment in the Previous Facility) without any limits on the type of borrowings and
is scheduled to expire in November 2020 (the Previous Facility was scheduled to expire in June 2019). The increased
commitment of $500 million to the Five-Year Facility offsets the effect of the expiration of our $500 million contingent liquidity
facility. See Contingent Liquidity Facilities below.
As of December 31, 2015, a total of $4.5 billion remains available under the Five-Year Facility. Our ability to borrow under the
Five-Year Facility is not contingent on our credit ratings. However, our ability to borrow under the Five-Year Facility is
conditioned on the satisfaction of certain legal, operating, administrative and financial covenants and other requirements
contained in the Five-Year Facility. These include covenants relating to our maintenance of a specified total consolidated net
worth and total consolidated debt to total consolidated capitalization. Failure to satisfy these and other requirements contained
in the Five-Year Facility would restrict our access to the Five-Year Facility and could have a material adverse effect on our
financial condition, results of operations and liquidity. We expect to borrow under the Five-Year Facility from time to time, and
may use the proceeds for general corporate purposes.
Contingent Liquidity Facilities
AIG Parent had access to a contingent liquidity facility of up to $500 million as a potential source of liquidity for general
corporate purposes. Under this facility, we had the unconditional right, prior to December 15, 2015, to issue up to $500 million
in senior debt to the counterparty, based on a put option agreement between AIG Parent and the counterparty. The contingent
liquidity facility expired by its terms on December 15, 2015. The expiration of the contingent liquidity facility is offset by the
effect of the increased commitment of $500 million to our Five-Year Facility. See Credit Facilities above.