AIG (AIG) Fully Repays Loan on Maiden Lane III Assets
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American International Group, Inc. (NYSE: AIG) confirmed today that, as a result of the recently completed auctions by the Federal Reserve Bank of New York (FRBNY) of certain Maiden Lane III LLC (ML III) assets, the outstanding loan by the FRBNY to ML III has been fully repaid. The ML III loan was non-recourse to AIG, and was being repaid with the cash flows from the interest and principal payments and liquidation of the assets in the facility.
To date, AIG has paid in full the FRBNY Credit Facility, the AIA SPV preferred interests, and the American Life Insurance Company (ALICO) SPV preferred interests. In addition, the U.S. Treasury’s stake in AIG common stock has been reduced by $17.5 billion and the Maiden Lane II and III loans have been fully repaid. The Federal Reserve has earned nearly $3 billion from the sale of the Maiden Lane II (ML II) portfolio and, based on current market values, could earn as much when the ML III portfolio is fully liquidated.
The maximum support authorized by the U.S. government to AIG reached $182 billion in 2008, of which $21 billion was unused or expired. Together with repayments, withdrawals, exchanges, sales, and other actions, total outstanding government support to AIG has decreased 83 percent, or $152 billion, with approximately $30 billion worth of shares of AIG common stock owned by the U.S. Treasury as the remaining investment. It should be noted that the $152 billion decrease only includes a reduction of original authorized support and not the Federal Reserve’s profit to date on ML II or the expected profit for ML III.
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To date, AIG has paid in full the FRBNY Credit Facility, the AIA SPV preferred interests, and the American Life Insurance Company (ALICO) SPV preferred interests. In addition, the U.S. Treasury’s stake in AIG common stock has been reduced by $17.5 billion and the Maiden Lane II and III loans have been fully repaid. The Federal Reserve has earned nearly $3 billion from the sale of the Maiden Lane II (ML II) portfolio and, based on current market values, could earn as much when the ML III portfolio is fully liquidated.
The maximum support authorized by the U.S. government to AIG reached $182 billion in 2008, of which $21 billion was unused or expired. Together with repayments, withdrawals, exchanges, sales, and other actions, total outstanding government support to AIG has decreased 83 percent, or $152 billion, with approximately $30 billion worth of shares of AIG common stock owned by the U.S. Treasury as the remaining investment. It should be noted that the $152 billion decrease only includes a reduction of original authorized support and not the Federal Reserve’s profit to date on ML II or the expected profit for ML III.
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