Aegon provides update on consent solicitation to amend coupon calculation on USD Perpetual Capital Securities
April 21, 2023, 17:45 CEST
FOR DISTRIBUTION ONLY OUTSIDE THE UNITED STATES TO PERSONS OTHER THAN “U.S. PERSONS” (AS DEFINED IN REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)). NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, OR TO ANY PERSON LOCATED OR RESIDENT IN, ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS DOCUMENT.
Aegon N.V. (Aegon) announced on April 4, 2023 a consent solicitation to consent to the modification of the terms and conditions of the USD Perpetual Capital Securities (ISIN: NL0000116168). These securities feature a coupon rate that is calculated using a LIBOR-referencing swap rate, which is expected to be discontinued from June 30, 2023.
A meeting regarding the consent solicitation was held on April 21, 2023. It was determined by the chairperson of the consent solicitation meeting that the required quorum, pursuant to the terms and conditions contained in the consent solicitation memorandum dated April 4, 2023, was not reached. Therefore, no resolutions were passed at the meeting.
Pursuant to its sole discretion in accordance with the terms and conditions set out in the consent solicitation memorandum, Aegon has decided to terminate the consent solicitation with immediate effect.
As previously indicated, Aegon has considered exercising the call option available in the terms and conditions of the Securities, and has concluded that this would not be in the economic interest of the company.
Aegon is considering appropriate next steps to avoid a situation where no coupon rate can be established and no coupon can be paid, as the LIBOR-referencing swap rate is widely expected to cease to be published by any administrator and/or will no longer be representative immediately after June 30, 2023.