American International Group is seeing a rebound in its stock after securing $4.3 billion of credit lines from banks. The new credit lines with 36 banks will allow it to get out from under New York Fed funding.
Earlier this month, AIG issued $2 billion in debt. This marked its first debt issuance since 2008.
The new private sector credit line is not a dollar-for-dollar replacement of the Fed’s credit line which is $21 billion but the repayment is expected to be completed in the first quarter of 2011.
AIG’s share prices have responded, rising significantly today.
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