Transamerica Corporation, a US subsidiary of AEGON, has completed 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 20 November.
The aggregate payment for the purchased securities, which will total USD 345 million (EUR 267 million), will be refinanced through funds provided by AEGON, Transamerica Corporation’s parent company.
The transaction will allow AEGON 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 took place on 21 November 2006.