AEGON raising $575 million in capital with 8% note offering

CEDAR RAPIDS -- AEGON, corporate parent of Transamerica in Cedar Rapids, expects to raise as much as $575 million of capital through an offering of subordinated notes paying 8 percent interest.

The Dutch insurer said it will offer $500 million worth of notes that will be due in 2042. It has agreed to grant underwriters a 30-day option to purchase up to $75 million for over-allotments. If that option is fully exercised, the offering would provide net proceeds of $575 million.

The 8 percent interest is a fixed rate and the notes, which will be issued in $25 denominations, are priced at 100 percent of their principal amount. AEGON, which will apply to list the notes on the New York Stock Exchange, said the coupon may be canceled under certain circumstances.

The offering is expected to be settled on Tuesday, Jan. 31, and the notes should be admitted for trading on the NYSE within 30 days. AEGON said it will use the proceeds for general corporate purposes.

 AEGON is an international life insurance, pension and asset management company based in The Hague, Netherlands. The company has businesses in over 20 markets in Nortj and South America, Europe and Asia.

AEGON and its subsidiaries employ about 26,000 people and have some 40 million customers.