American International Group Inc. (AIG) reduced its outstanding principal balance to slightly more than $15 billion, not including accumulated interest and fees. The insurer applied nearly $4 billion received from International Lease Finance Corporation (ILFC) to the Federal Reserve Bank of New York (FRBNY) Revolving Credit Facility (credit facility).
The payment of $3.95 billion represents the single largest cash payment AIG has made to the credit facility and is the largest reduction in the credit facility's principal balance since AIG placed AIA Group Limited (AIA) and American Life Insurance Co. (ALICO) into Special Purpose Vehicles last December and exchanged preferred equity interests in AIA and ALICO for a $25 billion reduction in the balance outstanding on the credit facility.
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