By Cristal Cody
Tupelo, Miss., April 4 – Aegon NV priced $800 million of 5.5% 30-year Tier 2 fixed-to-floating rate subordinated notes (Baa1/BBB/BBB-) on Wednesday, 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 basis points.
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 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
|
| Amount: | $800 million
|
| Description: | Fixed-to-floating rate subordinated notes
|
| Maturity: | April 11, 2048
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Coupon: | 5.5%; resets after 10-year fixed-rate period to six-month Libor plus 354 bps
|
| Call features: | Callable after April 11, 2028 at par
|
| Trade date: | April 4
|
| Settlement date: | April 11
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | 5.6% area
|
| Marketing: | Roadshow
|
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