THE HAGUE, The Netherlands, November 23 /PRNewswire/ -- Transamerica Corporation, a US subsidiary of AEGON N.V., announced today the successful completion of the cash tender offer for outstanding legacy debt securities issued by two affiliated trusts, Transamerica Capital II and Transamerica Capital III. Debt securities with a total liquidation amount of USD 281 million were purchased in the tender offer, which expired November 20, 2006 at 5 pm (EST).
The aggregate payment for the purchased securities, which will total USD 345 million (EUR 267 million), will be refinanced through funds provided by AEGON N.V., Transamerica Corporation's parent company.
The transaction will allow AEGON N.V. to take advantage of the current favourable interest rate environment to refinance the debt at a lower rate and reduce annual interest expenses going forward.
The settlement of the tender offer has taken place on November 21, 2006.
Purchase
Title of Amount Amount Price per
CUSIP No. Issuer Security Outstanding Tendered USD 1,000
893472AA8 Transamerica 7.65% USD USD USD
Capital II (1) Capital 225,000,000 137,535,000 1,210.97
Trust
Pass-Through
Securities(SM)
(TruPS)(SM)
due December
1, 2026
893473AC2 Transamerica 7.625% USD USD USD
Capital III (1) Capital 190,000,000 143,548,000 1,244.44
Trust
Pass-Through
Securities(SM)
(TruPS)(SM)
due November
15, 2037
USD USD
415,000,000 281,083,000
(1) Each of Transamerica Capital II and Transamerica Capital III are
statutory business trusts established under the laws of the State of Delaware
by Transamerica Corporation, as sponsor.
This announcement is not an offer to purchase or the solicitation of an
offer to sell any securities.
The Offer to Purchase has not been filed with or reviewed by any federal
or state securities commission or regulatory authority of any country, nor
has any such commission or authority passed judgment upon the accuracy or
adequacy of the Offer to Purchase. Any representation to the contrary is
unlawful and may be a criminal offence.
Forward Looking Statements
The statements contained in this press release that are not historical
facts may be forward-looking statements as defined in the U.S. Private
Securities Litigation Reform Act of 1995. Words such as 'believe',
'estimate', 'intend', 'may', 'expect', 'anticipate', 'predict', 'project',
'counting on', 'plan', 'continue', 'want', 'forecast', 'should', 'would', 'is
confident' and 'will' and similar expressions as they relate to us are
intended to identify such forward-looking statements. These statements are
not guarantees of future performance and involve risks, uncertainties and
assumptions that are difficult to predict. We undertake no obligation to
publicly update or revise any forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates.
All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from
expectations, including, but not limited to, the following:
- Changes in general economic conditions, particularly in the United States, the Netherlands and the United Kingdom;
- Changes in the performance of financial markets, including emerging markets, including:
- The frequency and severity of defaults by issuers in our fixed income investment portfolios; and
- The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in value of equity and debt securities we hold;
- The frequency and severity of insured loss events;
- Changes affecting mortality, morbidity and other factors that may affect the profitability of our insurance products;
- Changes affecting interest rate levels and continuing low interest rate levels and rapidly changing interest rate levels;
- Changes affecting currency exchange rates, including the EUR/USD and EUR/GBP exchange rates;
- Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets;
- Changes in laws and regulations, particularly those affecting our operations, the products we sell and the attractiveness of certain products to our consumers;
- Regulatory changes relating to the insurance industry in the jurisdictions in which we operate;
- Acts of God, acts of terrorism, acts of war and pandemics;
- Changes in the policies of central banks and/or governments;
- Litigation or regulatory action that could require us to pay significant damages or change the way we do business;
- Customer responsiveness to both new products and distribution channels;
- Competitive, legal, regulatory, or tax changes that affect the distribution cost of or demand for our products;
- Our failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving initiatives;
- The impact on our reported financial results and financial condition as a result of our adoption of International Financial Reporting Standards.
About AEGON
AEGON is one of the world's largest life insurance and pension companies, and a strong provider of investment products. We empower our local business units to identify and provide products and services that meet the evolving needs of our customers, using distribution channels best suited to their local markets. We take pride in balancing a local approach with the power of an expanding global operation.
With headquarters in The Hague, the Netherlands, AEGON companies employ approximately 27,000 people. AEGON's three major markets are the United States, the Netherlands and the United Kingdom. In addition, the Group is present in a number of other countries including Canada, China, Czech Republic, Hungary, Poland, Slovakia, Spain and Taiwan.
Respect, quality, transparency and trust constitute AEGON's core values as the company continually strives to meet the expectations of customers, shareholders, employees and business partners. AEGON is driven to deliver new thinking and our ambition is to be the best in the industry.
Contact Information
Group Corporate Affairs & Investor Relations
The Hague, The Baltimore, the United States
Netherlands
Analysts & +31-70-344-83-05 +1-877-548-9668 (toll free) /
Investors +1-410-576-45-77
Media +31-70-344-83-44
E-mail gca-ir@aegon.com ir@aegonusa.com
Website www.aegon.com