Termination Form Of Metlife Alico: Fill & Download for Free

[Updated as of 2Q2011]AIG executed its recapitalization plan with the U.S. Government on January 14, 2011 when it repaid in full the FRBNY (Federal Reserve Bank of New York) revolving credit facility; repaid and retired a portion of the preferred interests in the AIA and ALICO SPVs (Special Purpose Vehicles) and transferred the balance to the Treasury Department; and exchanged the AIG Preferred Shares held by the Treasury Department and the AIG Credit Facility Trust for AIG common stock; setting a path for the Treasury Department to monetize and exit its equity ownership over time.As of 3/31/2011, AIG owes an outstanding $37 billion to the U.S. Government.AIG repaid ~$21 billion principal and accrued interest and fees owed under the FRBNY credit facility, which is now terminated.AIG exchanged the Preferred Shares previously held by the Treasurey Department together with the Series C Preferred Shares previously held by the AIG Credit Facility Trust for the benefit of the United States Treasury for, among other things, approximately 1.655 billion shares of AIG common stock. The Treasury Department now holds approximately 92% of the total outstanding AIG common stock, and over time, is expected to sell these shares subject to market conditions. This was exchanged for common stock.A new Series G Preferred Shares was issued to the Treasury Department, and functions as a $2 billion commitment to provide funding that AIG will have the discretion and option to use.AIG paid down and retired approximately $5.1 billion of the FRBNY's preferred interests in the AIA and ALICO SPVs, using cash proceeds from the AIA PIO and the ALICO sale. AIG purchased the remainder of the FRBNY preferred interests using the undrawn balance of the TARP Series F Preferred Shares. Since January 14, 2011, AIG reduced the SPV balances further in February when AIG paid the Treasury Department approximately $2.2 billion from the sale of AIG Star Life Insurance Co., Ltd and AIG Edison Life Insurance Company; and in March when AIG paid the Treasury Department approximately $6.9 billion from proceeds of the sales of MetLife securities received in the ALICO sale. The ALICO SPV liquidation preference has been fully repaid. The Treasury Department is expected to be repaid in full over time from the proceeds of asset sales. Reduced by $15.1 billion.In November 2008, FRBNY created Maiden Lane II SPV to provide AIG liquidity by purchasing residential mortgage-backed securities from AIG life insurance and retirement services companies. FRBNY provided a loan to Maiden Lane II for the purchases. It also terminated a previously established securities lending arrangements with AIG. The original amount funded by the FRBNY was $19.5 billion. Loans to ML II are being repaid with the proceeds from the interests and principal payments and/or from the liquidation of the assets in the facility. The FRBNY is disposing of the securities in the ML II portfolio, individually, and in segments, over time.In November 2008, FRBNY Created Maiden Lane III SPV to provide AIG liquidity by purchasing collateralized debt obligations (CDOs) from AIG Financial Products Corp. counterparties in connection witht he termination of credit default swaps (CDSs) and surrender of the collateral by AIGFP FRBNY provided a loan to the SPV for the purchases. The original amount funded by the FRBNY was $24.3 billion. Loans to ML III are being repaid with the proceeds from the interest and principal payments and/or from the liquidation of the assets in the facility.[Older Information]As of September 30, 2010, AIG owed the U.S. government an outstanding debt and equity balance of $95.6 billion. To date, the outstanding bailout AIG received from The Federal Reserve Bank of New York (FRBNY) in both credit facility and equity total $124.8 bilion. This number comprises U.S. Department of Treasury TARP series D/E shares, U.S. Dept of Treasury TARP series F shares, Preferred Interests and AIA and Alico Special Purpose Vehicles held by FRBNY, and FRBNY investment in AIG-related RMBS and CDOs at Maiden Lane II Special Purpose Vehicles.According to http://media.corporate-ir.net/media_files/irol/76/76115/releases/111008.pdf, released November 10, 2008, the the interest rate on any outstanding debt and equity would be LIBOR + 3.0% per annum; the fee on undrawn commitments 0.75%. The term of the loan is 5 years from 2008, so AIG would be expected to pay back the $95.6 billion plus interest by 3Q2013.