FACTBOX-AIG revised rescue package highlights

March 2 - American International Group Inc <AIG.N> said on Monday that it had reached a revised rescue deal with the U.S. government, warding off for now the prospect of crippling credit rating downgrades.

The new deal is the latest revamp to the rescue package, which had already seen the U.S. Treasury and the Federal Reserve give AIG a commitment for $150 billion in government funds.

Here are the key features:

- New equity capital commitment: Up to $30 billion equity line from the $700 billion Troubled Asset Relief Program, with a five-year term.

- Terms of Treasury's $40 billion preferred investment eased: The new deal increases equity content of the preferred stake and reduces the annual cost of servicing dividends by more than $4 billion.

- ALICO & AIA: Foreign life operations American International Assurance (AIA) and American Life Insurance Co (Alico) will be put in special purpose vehicles. The New York Federal Reserve will get preferred stock in the vehicles in return for a reduction in the outstanding balance by up to $26 billion of its $60 billion credit line.

- Life insurance securitization: AIG plans to give the Fed securitization notes of up to $8.5 billion representing the embedded value of some U.S. life insurance businesses to further reduce government debt.

- Credit facility: The total amount available to AIG under the facility will remain at least $25 billion.

- Interest rate cut: The Libor floor on credit facility to be removed, saving AIG about $1 billion per year.

- AIU Holdings Inc: A new general insurance holding company with AIG's Commercial Insurance Group, Foreign General unit, and other property and casualty operations to be formed. AIG plans to sell a minority stake in AIU. A source with direct knowledge of the matter told Reuters earlier that up to 20 percent of the business may be sold to public, and over time it could be sold off in its entirety. (Reporting by Paritosh Bansal in New York; Editing by Lisa Von Ahn)