By Peter Schroeder - 12/27/10 07:33 PM EST
It disclosed that it had entered into a 364-day credit agreement and a three-year credit agreement, each worth $1.5 billion. In addition, its subsidiary Chartis reached a one-year, $1.3 billion agreement with banks.
The agreements come with several contingencies, including the requirement that AIG pay back money loaned to it by the Federal Reserve Bank of New York.
"This success is another important vote of confidence by the market in AIG," said AIG Chief Executive Officer Robert Benmosche in a statement. "These credit facilities, combined with the debt offering and contingent liquidity facility, demonstrate that AIG has momentum and has made substantial and impressive progress this year ... We can see the finish line."
The company disclosed earlier in December that it had established a plan to repay the New York Fed by March, which had loaned it $20 billion in secured debt. The plan also would allow the Treasury Department to convert its preferred shares in AIG into common shares, which could then be sold to the public as the government exits from its investment in the company.