DEBT

12 Months Ended

Dec. 31, 2014

15. DEBT

Our 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, when applicable. The interest rates presented in the following table reflect the range of contractual rates in effect at December 31, 2014, including fixed and variable rate issuances.

The following table lists our total debt outstanding at December 31, 2014 and 2013. The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2014, including fixed and variable-rates:

				Balance at		Balance at
At December 31, 2014	Range of	Maturity		December 31,		December 31,
(in millions)	Interest Rate(s)	Date(s)			2014		2013
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	2.30% - 8.13%		2015 - 2097	$	15,570	$	14,062
Subordinated debt	2.38%		2015		250		250
Junior subordinated debt	4.88% - 8.63%		2037 - 2047		2,466		5,533
Loans and mortgages payable	9.00%		2015		-		1
AIGLH notes and bonds payable	6.63% - 7.50%		2025 - 2029		284		299
AIGLH junior subordinated debt	7.57% - 8.50%		2030 - 2046		536		1,054
Total AIG general borrowings					19,106		21,199
AIG/DIB borrowings supported by assets:^(a)
MIP notes payable	2.28% - 8.59%		2015 - 2018		2,870		7,963
Series AIGFP matched notes and bonds payable	0.10% - 0.24%		2017 - 2047		34		3,219
GIAs, at fair value	0.04% - 8.50%		2015 - 2047		4,648		5,530
Notes and bonds payable, at fair value	0.15% - 10.4%		2015 - 2049		818		1,217
Total AIG/DIB borrowings supported by assets					8,370		17,929
Total debt issued or guaranteed by AIG					27,476		39,128
Debt not guaranteed by AIG:
Other subsidiaries notes, bonds, loans and
mortgages payable	0.06% - 5.60%		2015 - 2047		58		656
Debt of consolidated investments^(b)	0.03% - 9.06%		2015 - 2061		3,683		1,909
Total debt not guaranteed by AIG					3,741		2,565
Total long term debt^(c)				$	31,217	$	41,693

(a) AIG Parent guarantees all DIB debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent.

(b) At December 31, 2014, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp., AIGLH and AIG Property Casualty Inc. of $2.0 billion, $54 million, $1.5 billion and $122 million, respectively. At December 31, 2013, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp., AIGLH and AIG Property Casualty Inc. of $1.5 billion, $111 million, $696 million and $58 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 $3.7 billion in borrowings of debt of consolidated investments:

December 31, 2014			Year Ending
(in millions)		Total		2015		2016		2017		2018		2019		Thereafter
Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	$	15,570	$	847	$	1,554	$	510	$	2,407	$	998	$	9,254
Subordinated debt		250		250		-		-		-		-		-
Junior subordinated debt		2,466		-		-		-		-		-		2,466
AIGLH notes and bonds payable		284		-		-		-		-		-		284
AIGLH junior subordinated debt		536		-		-		-		-		-		536
Total AIG general borrowings		19,106		1,097		1,554		510		2,407		998		12,540
AIG/DIB borrowings supported by assets:
MIP notes payable		2,870		132		366		2,019		353		-		-
Series AIGFP matched notes and
bonds payable		34		-		-		10		-		-		24
GIAs, at fair value		4,648		619		165		226		631		180		2,827
Notes and bonds payable, at fair value		818		132		168		131		153		-		234
Total AIG/DIB borrowings supported by assets		8,370		883		699		2,386		1,137		180		3,085
Total debt issued or guaranteed by AIG		27,476		1,980		2,253		2,896		3,544		1,178		15,625
Other subsidiaries notes, bonds, loans
and mortgages payable		58		38		1		1		1		1		16
Total	$	27,534	$	2,018	$	2,254	$	2,897	$	3,545	$	1,179	$	15,641

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

		Uncollateralized		Collateralized
At December 31, 2014		Notes/Bonds/Loans		Loans and
(in millions)		Payable		Mortgages Payable		Total
Other subsidiaries notes, bonds, loans and mortgages payable^*		14		44		58
Total	$	14	$	44	$	58

* AIG does not guarantee any of these borrowings.

Junior Subordinated Debt

In August 2012, we entered into new replacement capital covenants (the New RCCs) for the initial benefit of the holders of our 2.375% Subordinated Notes due 2015 (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 covenanted in each New RCC that, subject to certain exceptions, we would not repay, redeem or purchase, and that none of our subsidiaries would 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. In the first quarter of 2013, our obligations under the New RCCs were effectively terminated because one of the termination provisions set forth in the New RCCs was triggered when it was determined that neither series of junior subordinated debentures received equity credit any longer for rating agency purposes.

In 2014, we repurchased approximately $2.4 billion aggregate principal amount of our 8.175% Series A-6 Junior Subordinated Debentures.

AIGLH Junior Subordinated Debentures (Formerly, Liabilities Connected To Trust Preferred Stock)

In connection with our acquisition of AIG Life Holdings, Inc. (AIGLH) in 2001, we entered into arrangements with AIGLH with respect to outstanding AIGLH capital securities. In 1996, AIGLH issued capital securities through a trust to institutional investors and funded the trust with AIGLH junior subordinated debentures issued to the trust with the same terms as the capital securities.

On July 11, 2013, the AIGLH junior subordinated debentures were distributed to holders of the capital securities, the capital securities were cancelled and the trusts were dissolved. At December 31, 2014, the junior subordinated debentures outstanding consisted of $155 million of 8.5 percent junior subordinated debentures due July 2030, $245 million of 8.125 percent junior subordinated debentures due March 2046 and $136 million of 7.57 percent junior subordinated debentures due December 2045, each guaranteed by AIG Parent.

Credit Facilities

The five-year syndicated credit facility that we entered into on June 19, 2014 (the Five-Year Facility) provides for $4.0 billion of unsecured revolving loans and/or standby letters of credit without any limits on the type of borrowings. As of December 31, 2014, a total of $4 billion remains available under the Five-Year Facility. We expect we may draw down on the Five-Year Facility from time to time, and may use the proceeds for general corporate purposes. The Five-Year Facility is summarized in the following table.

At December 31, 2014				Available		Effective
(in millions)		Size		Amount	Expiration	Date
Five-Year Syndicated Credit Facility	$	4,000	$	4,000	June 2019	6/19/2014

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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