Aegon Funding Company LLC will be selling a new issue of subordinated notes with a maturity date in 2049. These will likely be investment grade, but I don’t see a current rating from Moody’s or Standard and Poor’s.
AEGON Funding is a division of AEGON NV, the giant Dutch insurer.
The parent company has 2 outstanding issues which can be seen here.
The preliminary prospectus can be seen here.
As the name implies this issue will rank senior to common stock, but junior to any senior and/or secured debt in the capital stack.
Early quote was 25.19 last trade but that was yesterday and I couldn’t get symbol to take on ticket
Great issuer. Painfully low rate. Probably can’t even get a flip out of it.
If rates stay here it could push 26 by December.
Per following link the foreign div withholding tax goes to zero next year:
https://www.simplysafedividends.com/intelligent-income/posts/31-foreign-dividend-withholding-tax-guide
Per this link, the withholding stays the same for almost all cases.
https://news.bloombergtax.com/daily-tax-report-international/insight-netherlands-2020-budget-impacts-multinational-corporations
Also, that article gets some things pretty wrong, like Germany’s rules and the withholding by US companies.
I would be stunned if they did not redeem AEH, the 6.375% security, but then I am stunned they haven’t already.
If you own AEH at its current price of 26.03, I would suggest you sell now.
That’s been neg ytc for a very long time
Hmm. this might be a good candidate to short…
Anybody know the call schedule and when it could be called next?
Since 6/15/15, on any interest payment date thereafter
So, 12/15/19, or with one more distribution, if you prefer
They have recently redeemed two others so it might work for you. But short margin rates are probably steep and you’d owe any dividends paid. Plus I think there are over 125 neg ytc now.
It was a 900 million dollar issue so they do have enough coin to redeem aeh.
Expected Baa1/BBB
5.20 talk I’d be surprised if over 5 1/8
I would love 5.2 but would be surprised if it’s not 5.0 for baa1 rated
Thanks
Priced at 5.10%