AEGON proposes $500m fundraising
AEGON is proposing to raise at least $500 million with an offering of 8% non-cumulative subordinated notes, due 2042.
As part of the offering, the Dutch insurer has granted the underwriters a 30-day option to purchase up to $75 million of notes to cover over-allotments, raising gross proceeds to $575 million, should this option be exercised in full.
The notes will bear interest at a fixed rate of 8% and an application will be made for their listing on the New York Stock Exchange (NYSE), with the offering expected to be settled on 31st January 2012 and the notes expected to be admitted for trading on the NYSE within 30 days thereafter.
The insurer says the proceeds from the issuance will be used for general corporate purposes.
Joint book-runners for the offering are BofA Merrill Lynch, Citigroup, Morgan Stanley and Wells Fargo Securities.
AEGON had to be rescued by the Dutch state at the height of the credit crisis but has since settled up in full and outlined ambitious growth plans for its businesses in the Americas, the Netherlands, UK and Central & Eastern Europe.
Category: Financials, Insurance News
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