In March 2010,
According to the new agreement announced by the companies, AIG can now sell the securities and use the proceeds to accelerate payments to the U.S. Department of the Treasury ("Treasury") on Treasury's preferred interest in the special purpose vehicle ("SPV") through which AIG holds the MetLife securities.
"We appreciate MetLife's agreement to permit the proposed sales," AIG Chairman Robert Miller said in a statement. "As a result, AIG expects to take another major step forward. Seven weeks ago, we repaid the Federal Reserve Bank of New York in full. These sales, if completed, would put the government closer to recouping its investment in AIG."
AIG currently holds 78.2 million shares of MetLife common stock, MetLife preferred stock equivalent to 68.6 million shares of common stock, and MetLife equity units with a stated value of $3 billion that are ultimately convertible into at least 67.8 million shares of MetLife common stock.
Under the terms of the new agreement, MetLife will allow AIG to sell the common stock and equity units in underwritten public offerings. Concurrently, MetLife intends to purchase the preferred stock from AIG using the net proceeds of a concurrent primary offering of its common stock, subject to market conditions.
The stock sale is just the latest in a