AIG Enters $500 Million Liquidity Facility With Five-Year Span

American International Group Inc. (AIG), the bailed-out insurer, entered a contingent liquidity facility that gives the company the right to issue $500 million in senior debt to a financial institution.

The insurer has one year to enter a put-option agreement that would give it the right for a period of five years to issue the debt, New York-based AIG said in a regulatory filing yesterday that didn’t identify the counterparty. The agreement was reached in October, according to the filing.

To contact the reporter on this story: Noah Buhayar in New York at nbuhayar@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net

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