15. DEBT OUTSTANDING

AIG's long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts, hedge accounting valuation adjustments and fair value adjustments, where applicable. The interest rates presented in the following table reflect the range of contractual rates in effect at year end, including fixed and variable rate issuances.

The following table lists our total debt outstanding at December 31, 2012 and 2011. The interest rates presented in the following table are the range of contractual rates in effect at year end, including fixed and variable-rates:




Year Ended December 31, 2012 (in millions)^{Interest Rate(s)}	Range of	Maturity Date(s)		Balance at December 31, 2012		Balance at December 31, 2011

Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	2.50% - 8.13%		2013 - 2097	$	14,084	$	12,725
Subordinated debt	2.38%		2015		250		–
Junior subordinated debt^(a)	4.88% - 8.63%		2037 - 2058		9,416		9,327
Loans and mortgages payable	1.09% - 9.00%		2013 - 2015		79		234
SunAmerica Financial Group, Inc. notes and bonds payable	6.63% - 7.50%		2025 - 2029		298		298
Liabilities connected to trust preferred stock	7.57% - 8.50%		2030 - 2046		1,339		1,339

Total AIG general borrowings	–		–		25,466		23,923

AIG borrowings supported by assets:
MIP notes payable	0.38% - 8.59%		2013 - 2018		9,296		10,147
Series AIGFP matched notes and bonds payable	0.06% - 8.25%		2013 - 2052		3,544		3,807
GIAs, at fair value^(b)	3.50% - 9.80%		2013 - 2047		6,501		7,964
Notes and bonds payable, at fair value^(b)	0.18% - 10.37%		2013 - 2053		1,554		2,316
Loans and mortgages payable, at fair value	–		–		–		486

Total AIG borrowings supported by assets	–		–		20,895		24,720

Total debt issued or guaranteed by AIG	–		–		46,361		48,643

Debt not guaranteed by AIG:
ILFC:
Notes and bonds payable, ECA Facility, bank financings and other secured financings	0.50% - 8.88%		2013 - 2025		–		23,365
Junior subordinated debt	4.54% - 6.25%		2065		–		999

Total ILFC debt^(c)	–		–		–		24,364

Other subsidiaries notes, bonds, loans and mortgages payable	0.24% - 8.29%		2013 - 2060		325		393

Debt of consolidated investments^(d)	0.03% - 7.15%		2013 - 2035		1,814		1,853

Total debt not guaranteed by AIG	–		–		2,139		26,610

Total long term debt	–		–	$	48,500	$	75,253

(a) We may currently redeem our 6.45% Series A-4 and our 7.7% Series A-5 junior subordinated debt at their respective principal amounts plus unpaid accrued interest on any of their respective interest payment dates. The remaining junior subordinated debt is subject to call options that range from 2017-2038 and if we do not exercise these call options, the interest rate will change from the referenced fixed interest rate to a floating rate. See further discussion under Junior Subordinated Debt below.

(b) DIB notes and bonds include structured debt instruments whose payment terms are linked to one or more financial or other indices (such as equity index or commodity index or another measure that is not considered to be clearly and closely related to the debt instrument). The DIB economically hedges its notes, bonds, and GIAs. As a result, certain of the interest rate or currency exposures are hedged with floating rate instruments so the stated rates may not reflect the all-in cost of funding after taking into account the related hedges.

(c) Excludes $24.3 billion of debt for ILFC at December 31, 2012 which has been reclassified to Liabilities of businesses held for sale.

(d) At December 31, 2012 and 2011, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp. and SunAmerica of $1.5 billion, $176 million and $133 million and $1.5 billion, $233 million and $91 million, respectively.

The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable), excluding $1.8 billion in borrowings of consolidated investments:

			Year Ending


December 31, 2012 (in millions)			Year Ending
December 31, 2012 (in millions)	Total		2013		2014		2015		2016		2017		Thereafter

General borrowings:
Notes and bonds payable	$	14,084	$	1,469	$	500	$	999	$	1,738	$	1,455	$	7,923
Subordinated debt		250		–		–		250		–		–		–
Junior subordinated debt		9,416		–		–		–		–		–		9,416
Loans and mortgages payable		79		77		–		2		–		–		–
SAFG, Inc. notes and bonds payable		298		–		–		–		–		–		298
Liabilities connected to trust preferred stock		1,339		–		–		–		–		–		1,339

AIG general borrowings	$	25,466	$	1,546	$	500	$	1,251	$	1,738	$	1,455	$	18,976

Borrowings supported by assets:
MIP notes payable		9,296		851		1,613		1,021		1,329		3,971		511
Series AIGFP matched notes and bonds payable		3,544		3		–		–		–		–		3,541
GIAs, at fair value		6,501		380		585		601		321		260		4,354
Notes and bonds payable, at fair value		1,554		366		31		193		329		104		531
Loans and mortgages payable, at fair value		–		–		–		–		–		–		–

AIG borrowings supported by assets		20,895		1,600		2,229		1,815		1,979		4,335		8,937

Other subsidiaries notes, bonds, loans and mortgages payable		325		43		11		22		3		5		241

Total	$	46,686	$	3,189	$	2,740	$	3,088	$	3,720	$	5,795	$	28,154

Uncollateralized and collateralized notes, bonds, loans and mortgages payable consisted of the following:

At December 31, 2012 (in millions)	Uncollateralized Notes/Bonds/Loans Payable		Collateralized Loans and Mortgages Payable		Total



AIG general borrowings	$	79	$	–	$	79
Other subsidiaries notes, bonds, loans and mortgages payable^*		104		221		325

Total	$	183	$	221	$	404

* AIG does not guarantee any of these borrowings.

Junior Subordinated Debt

During 2007 and 2008, we issued an aggregate of $12.5 billion of junior subordinated debentures denominated in U.S. dollars, British Pounds and Euros in eight series of securities. In November 2011, we exchanged specified series of our outstanding junior subordinated debentures for newly issued senior notes pursuant to an exchange offer. In particular,we exchanged (i) $312 million aggregate principal amount of our outstanding Series A-1 Junior Subordinated Debentures for $256 million aggregate principal amount of our new 6.820% Dollar notes due November 15, 2037, (ii) £812 million ($1.26 billion at the December 31, 2011 exchange rate) aggregate principal amount of our outstanding Series A-2 and Series A-8 Junior Subordinated Debentures for £662 million ($1.03 billion at the December 31, 2011 exchange rate) aggregate principal amount of our new 6.765% Sterling notes due November 15, 2017 and (iii) €591 million ($766 million at the December 31, 2011 exchange rate) aggregate principal amount of our outstanding Series A-3 Junior Subordinated Debentures for €421 million ($545 million at the December 31, 2011 exchange rate) aggregate principal amount of our new 6.797% Euro notes due November 15, 2017. This exchange resulted in a pre-tax gain on extinguishment of debt of approximately $484 million, which is reflected in Net loss on extinguishment of debt in the Consolidated Statement of Operations and a deferred gain of $65 million, which will be amortized as a reduction to future interest expense.

In connection with the issuance of the eight series of junior subordinated debentures, we had entered into replacement capital covenants (the Original RCCs) for the benefit of the holders of "covered debt" (a designated series of our notes). The Original RCCs provided that we would not repay, redeem, or purchase the applicable series of junior subordinated debentures on or before a specified date, unless we issued certain replacement capital securities. In August 2012, we issued an aggregate of $250 million of 2.375% Subordinated Notes due 2015 (the Subordinated Notes), which upon their issuance became the "covered debt" under the Original RCCs. The holders of the newly issued Subordinated Notes, as the holders of the "covered debt" under the Original RCCs, consented to amendments to each of those Original RCCs that deleted all of the covenants that restricted our ability to repay, redeem or purchase the applicable series of the junior subordinated debentures.

We have entered into new replacement capital covenants (the New RCCs) for the initial benefit of the holders of the Subordinated Notes, in connection with our 5.75% Series A-2 Junior Subordinated Debentures and our 4.875% Series A-3 Junior Subordinated Debentures. We covenant in each New RCC that, subject to certain exceptions, we will not repay, redeem or purchase, and that none of our subsidiaries will purchase, the applicable series of junior subordinated debentures prior to the scheduled termination date of that New RCC, unless since the date 360 days prior to the date of that repayment, redemption or purchase, we have received a specified amount of net cash proceeds from the sale of common stock or certain other qualifying securities that have certain characteristics that are at least as equity-like as the applicable characteristics of the applicable series of junior subordinated debentures, or we or our subsidiaries have issued a specified amount of common stock in connection with the conversion or exchange of certain convertible or exchangeable securities.

We may currently redeem our 6.45% Series A-4 Junior Subordinated Debentures and our 7.70% Series A-5 Junior Subordinated Debentures, in whole or in part, at their respective principal amounts plus accrued and unpaid interest through the date of redemption.

Liabilities Connected To Trust Preferred Stock

In connection with our acquisition of SunAmerica Financial Group, Inc. (SAFG, Inc.) in 2001, we entered into arrangements with SAFG, Inc. with respect to outstanding SAFG, Inc. capital securities. In 1996, SAFG, Inc. issued capital securities through a trust to institutional investors and funded the trust with SAFG, Inc. junior subordinated debentures issued to the trust. SAFG, Inc. guaranteed payments to the holders of capital securities only to the extent (i) the trust received payments on the debentures and (ii) these payments were available for the trust to pay to holders of capital securities. In 2001, AIG Parent guaranteed the same payments to the holders of capital securities. Like the SAFG, Inc. guarantee, the AIG Parent guarantee only applies to any payments actually made to the trust in respect of the debentures. If no payments are made on the debentures, AIG Parent is not required to make any payments to the trust. AIG Parent also guaranteed the debentures pursuant to a guarantee that is expressly subordinated to certain SAFG, Inc. senior debt securities. Under the AIG Parent guarantee, AIG Parent is not required to make any payments in respect of the debentures if such payment would be prohibited by the subordination provisions of the debentures. As a result, AIG Parent will never be required to make a payment under its guarantee of the debentures for so long as SAFG, Inc. is prohibited from making a payment on the debentures.

At December 31, 2012, the preferred stock outstanding consisted of $300 million liquidation value of 8.5 percent preferred stock issued by American General Capital II in June 2000, $500 million liquidation value of 8.125 percent preferred stock issued by American General Institutional Capital B in March 1997 and $500 million liquidation value of 7.57 percent preferred stock issued by American General Institutional Capital A in December 1996.

Credit Facilities

On October 5, 2012, we terminated our previously outstanding $1.5 billion 364-Day syndicated credit facility and amended and restated the four-year syndicated credit facility that was entered into in October 2011 (the Previous Facility). The amended and restated four-year syndicated credit facility, the Four-Year Facility, provides for $4.0 billion of unsecured revolving loans (increased from $3.0 billion in the Previous Facility), which includes a $2.0 billion letter of credit sublimit (increased from $1.5 billion in the Previous Facility). The approximately $1.0 billion of previously issued letters of credit under the Previous Facility were rolled into the letter of credit sublimit within the Four-Year Facility. As a result, a total of approximately $3.0 billion remains available under the Four-Year Facility, of which approximately $1.0 billion remains available for letters of credit. We expect that we may draw down on the Four-Year Facility from time to time, and may use the proceeds for general corporate purposes. The Four Year Facility also provides for the issuance of letters of credit. The Four-Year Facility is summarized in the following table.

December 31, 2012 (in millions) Facility	Size		Available Amount



Four-Year Syndicated Credit Facility	$	4,000	$	3,037	October 2016	10/05/2012