By Devika Patel
Knoxville, Tenn., April 5 – Aegon NV offered further details about an $800 million sale of 5.5% 30-year tier 2 fixed-to-floating rate subordinated notes (Baa1/BBB/BBB-) that priced at par on Wednesday, on the tight side of guidance that was set in the 5.6% area.
The fixed rate will be reset after the 10-year non-call period to a floating rate of six-month Libor plus 354 basis points, according to an FWP filed with the Securities and Exchange Commission.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners with J.P. Morgan acting as structuring agent.
The company held a roadshow on Tuesday for the issue.
Proceeds will be used for general corporate purposes, including redemption of grandfathered subordinated debt.
The international life insurance, pensions and asset management company is based in The Hague, Netherlands.
| Issuer: | Aegon NV
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| Amount: | $800 million
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| Description: | Fixed-to-floating rate tier 2 subordinated notes
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| Maturity: | April 11, 2048
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| Bookrunners: | J.P. Morgan Securities LLC (structuring), BofA Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
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| Coupon: | 5.5%; resets on April 11, 2028 to six-month Libor plus 354 bps
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| Price: | Par
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| Call features: | Callable at par on any interest payment date beginning on April 11, 2028
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| Trade date: | April 4
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| Settlement date: | April 11
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| Ratings: | Moody’s: Baa1
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| S&P: BBB
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Price talk: | 5.6% area
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| Marketing: | Roadshow
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