Ageas takes in tenders for 71.71% of 5.125% perpetual securities

By Toni Weeks

San Luis Obispo, Calif., March 30 – Ageas Hybrid Financing (formerly known as Fortis Hybrid Financing) announced it took in tenders for €241,318,000, or 71.71%, of its outstanding €336,364,000 of 5.125% perpetual subordinated securities in the company’s tender offer that expired at 11 a.m. ET on March 27.

Ageas said it will accept for purchase all tendered securities, subject to the satisfaction or waiver of new financing. The company said it has placed €400 million of new securities with an initial fixed interest rate of 3.5% until June 30, 2027. Settlement of the new notes, as required for the tender offer, is expected March 31.

If settlement occurs, €95,146,000 of the securities will remain outstanding.

Ageas is offering a purchase price of 103% of par plus accrued interest for the perpetual securities, which have a first call date in June 2016.

The minimum tender denomination is €50,000.

As previously reported, the purpose of the offer is to enhance the capital position of the Ageas Group following the announcement that AG Insurance SA/NV plans to issue new fixed-rate reset dated subordinated notes due 2047.

The joint dealer managers are J.P. Morgan Securities plc (44 20 7134 2468 /44 20 7134 3414, attn: FIG Syndicate / liability management; FIG_Syndicate@jpmorgan.com / emea_lm@jpmorgan.com), BNP Paribas (44 207 595 8668, attn: liability management group; liability.management@bnpparibas.com) and HSBC Bank plc (44 207 992 6237, attn: liability management group; liability.management@hsbcib.com).

Lucid Issuer Services Ltd. is the tender agent (44 20 7704 0880, attn: Thomas Choquet; ageas@lucid-is.com).

Ageas is an insurance company with headquarters in Brussels and Utrecht, the Netherlands. It originally issued €500 million of the securities.

© 2015 Prospect News.
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