American International Group, Inc. (AIG) entered into the Fourth Amended and Restated Credit Agreement among AIG, the subsidiary borrowers party thereto, the lenders party thereto. JPMorgan Chase Bank served as Administrative Agent, and each Several L/C Agent party thereto, which amends and restates AIG’s Third Amended and Restated Credit Agreement, dated as of November 5, 2015, among AIG, the subsidiary borrowers party thereto, the lenders party thereto, JPMorgan, as Administrative Agent, and each Several L/C Agent party thereto.

The Fourth Amended Credit Agreement provides for a five-year total commitment of $4.5 billion, consisting of standby letters of credit and/or revolving credit borrowings without any limits on the type of borrowings. Under circumstances described in the Fourth Amended Credit Agreement, the aggregate commitments may be increased by up to $500 million, for a total commitment under the Fourth Amended Credit Agreement of $5.0 billion. Under the Fourth Amended Credit Agreement, the applicable rate, commitment fee and letter of credit fee are determined by reference to the credit ratings of AIG’s senior unsecured long-term debt. Borrowings bear interest at a rate per annum equal to the adjusted LIBO rate plus an applicable rate or an alternative base rate plus an applicable rate. The adjusted LIBO rate is equal to LIBOR and is subject to adjustment for reserve requirements. The alternative base rate is equal to the highest of (i) the rate of interest per annum publicly announced from time to time by JPMorgan as its prime rate; (ii) the federal funds rate plus 0.50%; and (iii) the adjusted LIBO rate plus 1.00%.

The Fourth Amended Credit Agreement requires AIG to maintain a minimum consolidated net worth and subjects AIG to a specified limit on total consolidated debt to total consolidated capitalization, subject to certain limitations and exceptions. In addition, the Fourth Amended Credit Agreement contains certain customary affirmative and negative covenants, including limitations with respect to the incurrence of certain types of liens, transactions with affiliates, and certain fundamental changes. Amounts due under the Fourth Amended Credit Agreement may be accelerated upon an “event of default,” as defined in the Fourth Amended Credit Agreement, such as failure to pay amounts owed thereunder when due, breach of a covenant, material inaccuracy of a representation, or occurrence of bankruptcy or insolvency, subject in some cases to cure periods.

AIG expects that it may draw on the Fourth Amended Credit Agreement from time to time, and may use the proceeds for general corporate purposes. Letters of credit issued under the Fourth Amended Credit Agreement will be used to support reinsurance operations of AIG’s insurance subsidiaries and for general corporate purposes. As of June 27, 2017, there are no borrowings or letters of credit outstanding under the Fourth Amended Credit Agreement, so that a total of approximately $4.5 billion remains available under the Fourth Amended Credit Agreement.