Aegon prices $800 million; volume thin; Bank Nederlandse offers notes; deal pipeline grows

By Cristal Cody

Tupelo, Miss., April 4 – Aegon NV priced $800 million of 30-year subordinated notes on Wednesday as the sole reported issuer in the high-grade primary market.

Market concerns over a potential trade war with China sent stocks tumbling over the morning but equities rallied by the market close.

High-grade credit spreads tightened. The Markit CDX North American Investment Grade 30 index firmed about 1 basis point to close at a spread of 65 bps.

More than $10 billion of corporate bonds priced in the first two sessions. Syndicate sources forecasted about $20 billion to $25 billion of total issuance for the week.

Coming up on Thursday, Bank Nederlandse Gemeenten NV plans to price $500 million of floating-rate notes.

Several issuers are considering bond offerings.

Salesforce.com, Inc. held a second round of fixed-income investor calls on Wednesday for two tranches of senior notes, according to a market source. BofA Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the arrangers.

Ausgrid Finance Pty Ltd. plans to start a roadshow for a benchmark-sized deal on Friday, a source said.

Banco Santander, SA also is holding a roadshow that started on Tuesday in the U.S. and Canadian markets for a benchmark-sized dollar-denominated note offering, according to a market source. BofA Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities and Santander Investment Securities Inc. are the arrangers.

Coming up over the week of April 23, Caisse de depot et placement du Quebec (Aaa/AAA/) will hold its roadshow for a potential dollar-denominated bond deal, according to a market source.

BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and TD Securities (USA) LLC are the arrangers.

Aegon prices $800 million

Aegon priced $800 million of 5.5% 30-year tier 2 fixed-to-floating rate subordinated notes (Baa1/BBB/BBB-) on the tight side of guidance in the 5.6% area, according to a market source and a news release.

The fixed rate will be reset after the 10-year non-call period to a floating rate of six-month Libor plus 354 bps.

The floating rate is with a margin that includes a 100 bps step-up.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.

The international life insurance, pensions and asset management company is based in The Hague.

BNG offers $500 million

Bank Nederlandse Gemeenten (Aaa/AAA/AA+) plans to price $500 million of floating-rate notes due March 11, 2022 on Thursday, according to a market source.

The notes were initially talked to price in the Libor plus 7 bps area.

BofA Merrill Lynch and Goldman Sachs & Co. LLC are the bookrunners for the Rule 144A and Regulation S sale.

The banking services company is based in The Hague.

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