Shares of American International Group Inc. (NYSE: AIG) are soundly higher this morning after the company said it entered bank credit facilities totaling $3-billion.
AIG also said its Chartis Inc. unit entered into a $1.3-billion letter of credit facility with another lending group.
As of 10:31 am (EDT), AIG shares were up 4.42 percent.
Year-to-date, the stock has almost doubled in value.
The new facilities will be available to the company upon the closing of its recapitalization plan with the Department of the Treasury, the Federal Reserve Bank of New York and the AIG Credit Facility Trust. Earlier this month, AIG successfully re-entered the debt markets by raising of $2 billion from the sale of senior unsecured notes after being absent from the markets from more than two-years
“This success is another important vote of confidence by the market in AIG,” said AIG Chief Executive Officer Robert Benmosche. “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.”
Benmosche added that “as we approach year’s end, we believe we are close enough to completing our recapitalization plan that we can see the finish line.”
Palash has worked as a business journalist for 21 years in New York.