Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
|
FREE Newsletter
Recommended Links
 |
AIG Obtains LIBOR-Based Loan for Aircraft Unit |
December 9, 2009
According to RTT News, ILFC, the aircraft leasing division of collapsed mega-insurer AIG, has obtained a new LIBOR-based loan. LIBOR stands for London Interbank Offered Rate and is a filtered average of rates that banks charge each other for unsecured, short-term loans.
The new LIBOR-based loan is for $200 million and will be added to ILFC’s existing credit facility of $2 billion. ILFC was unable to tap the government’s commercial paper program due to credit downgrades, compelling AIG to borrow the additional funds from the New York Federal Reserve. ILFC will pay 6.025% above LIBOR on its combined $2.2 billion in financing, a jump from 3% above LIBOR precipitated by the unit’s failure to fully perfect its collateral per a December 1 deadline.