FACTBOX-U.S. Treasury, Fed restructure support for AIG

Nov 10 (Reuters) - The following are details of the
restructured financial support the U.S. Federal Reserve and
Treasury Department have offered to insurer American
International Group:

* Treasury to purchase $40 billion of newly issued AIG
preferred shares under the Troubled Asset Relief Program,
allowing Fed to reduce from $85 billion to $60 billion the
amount available under its original loan to AIG.

* Interest rate on Fed loan reduced to three-month Libor
plus 300 basis points from three-month Libor plus 850 basis
points, and the fee on undrawn funds will be reduced to 75 basis
points from 850 basis points. Credit extended to five years from
two year.

* New York Fed to lend up to $22.5 billion to newly formed
limited liability company to fund the purchase of residential
mortgage-backed securities from AIG. AIG to make $1 billion
subordinated loan to the LLC and bear the risk for the first $1
billion of any losses. New York Fed and AIG will share any
residual cash flows after loans are repaid.

* Proceeds from RMBS facility and other AIG resources will
be used to repay second Fed loan to AIG, which will be
terminated.

* New York Fed to lend up to $30 billion to a second newly
formed LLC to fund purchases of multi-sector collateralized debt
obligations on which AIG wrote credit default swap contracts.
AIG to make $5 billion subordinated loan to the LLC and bear the
risk for the first $5 billion of any losses. The CDS
counterparties will concurrently unwind the related CDS
transactions. New York Fed and AIG will share any residual cash
flows after the loans are repaid.