Aegon calls $550 million 6.875% junior perpetual capital securities

By Marisa Wong

Madison, Wis., Jan. 22 - Aegon NV will redeem its 6.875% junior perpetual capital securities on March 15, according to a press release.

Aegon said it will repay the $550 million principal amount along with accrued interest.

The redemption is part of the company's efforts to lower its gross financial leverage ratio to within a range of 26% to 30%.

Specifically, the redemption will improve Aegon's gross financial leverage ratio by 120 basis points and reduce future interest costs, improving the company's fixed-charge coverage by about 0.6 times, the release said.

Aegon issued the 6.875% perpetual capital securities in 2006.

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

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