AIG’s Corebridge Financial signs $2.5 billion five-year revolver

By William Gullotti

Buffalo, N.Y., May 13 – Corebridge Financial Inc., a majority-owned subsidiary of American International Group, Inc., entered into a $2.5 billion five-year revolving credit agreement on May 12 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has no sublimits regarding types of borrowings and, under circumstances, may be increased by up to $500 million. Borrowings may be prepaid at any time without premium or penalty.

Revolver borrowings will bear interest at term SOFR, Euribor, Tibor or Sonia plus margins ranging from 100 basis points to 150 bps. Credit spread adjustments of 10 bps and 3.26 bps apply to term SOFR and Sonia benchmark rates, respectively.

The letter-of-credit fee ranges from 87.5 bps to 137.5 bps with commitment fee rates ranging from 10 bps to 20 bps.

Fee and margins are determined by Corebridge’s credit ratings.

The credit agreement further requires Corebridge to maintain a specified minimum consolidated net worth and subjects Corebridge to a limit on total consolidated debt to total consolidated capitalization.

Loans from the facility will mature May 17, 2027 unless Corebridge’s IPO has not occurred on or prior to Dec. 29, 2023, in which case the loans mature on that deadline.

Proceeds from the revolver will be used for general corporate purposes of the company and its subsidiaries.

In addition to serving as administrative agent, JPMorgan Chase Bank is a joint lead arranger and joint bookrunner along with BofA Securities, Inc., Citibank, NA and Wells Fargo Securities, LLC. Citibank and Wells Fargo are also serving as syndication agents with Bank of America, NA.

Goldman Sachs Bank USA, Morgan Stanley Bank, NA, Barclays Bank plc, BNP Paribas, Deutsche Bank Securities Inc., HSBC Bank USA, NA, Mizuho Bank, Ltd., PNC Bank, NA, Royal Bank of Canada, Sumitomo Mitsui Banking Corp., Bank of Nova Scotia and U.S. Bank NA are the co-documentation agents.

There were no borrowings from the facility at closing.

AIG is a New York-based insurance and financial services company. Corebridge is the holding company for AIG’s life and retirement business.

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