ING Group announced today that pricing has been set in the tender offer to buy back up to US$ 1.2 billion (EUR 1.0 billion) in outstanding legacy debt securities issued by Aetna Services Inc. and Equitable of Iowa Companies, two predecessors of ING's U.S. subsidiary Lion Connecticut Holdings Inc.
The offer price for each US$ 1,000 principal or liquidation amount was calculated based on a fixed spread over the yield based on the bid-side price of the applicable reference U.S. treasury security (as per 14 December 2005 at 11 am New York time). Holders will also receive accrued and unpaid interest or distributions on securities purchased in the tender offer. The offer price and the accrued and unpaid interest or distributions for each security is as follows:
|
Original Issuer |
Title of Securities |
CUSIP No. |
Reference Security |
Tender Offer Yield |
Purchase Price (per $1,000) |
Accrued Interest or Distributions |
|
Aetna Services, Inc. (formerly Aetna Life & Casualty Co.) |
6.750% Debentures due 15 September 2013 |
008117AD5 |
4.500% due November 2015 |
5.152% |
$1,100.80 |
$17.81 |
|
Aetna Services, Inc. (formerly Aetna Life & Casualty Co.) |
7.250% Debentures due 15 August 2023 |
008117AG8 |
5.375% due February 2031 |
5.444% |
$1,203.10 |
$25.17 |
|
Aetna Services, Inc. (formerly Aetna Life & Casualty Co.) |
7.625% Debentures due 15 August 2026 |
008117AH6 |
5.375% due February 2031 |
5.464% |
$1,265.48 |
$26.48 |
|
Aetna Services, Inc. (formerly Aetna Life & Casualty Co.) |
6.970% Debentures due 15 August 2036 |
008117AJ2 |
5.375% due February 2031 |
5.514% |
$1,214.11 |
$24.20 |
|
Equitable of Iowa Companies Capital Trust II |
8.424% Series B Capital Securities due 1 April 2027 |
294514AC8 |
5.375% due February 2031 |
5.564% |
$1,354.00 |
$18.49 |
The tender offer will expire at 5 pm New York time on Thursday 15 December 2005, unless extended or earlier terminated by the offering company. The settlement for securities purchased in the tender offer is expected to occur on the third business day after the expiration of the tender offer.
ING plans to refinance the debt through ING Verzekeringen NV, a parent company of Lion Connecticut Holdings Inc. The financial impact of the transaction will depend on general market circumstances as well as the percentage of securities tendered and accepted in the tender offer. Final details on the impact for ING Group will be announced after the expiration of the offer.
|
Press enquiries: ING Group
Dorothy Hillenius, +31 20 541 6522, dorothy.hillenius@ing.com |
Information on the tender offer is available via J.P. Morgan Securities Inc., the Dealer Manager, at +1-866-834-4666 (toll free). Requests for documents may be directed to the Information Agent for the tender offer, Global Bondholder Services Corporation, at +1-212-430-3777 (collect calls accepted.)
This announcement is not an offer to purchase or the solicitation of an offer to sell any securities. The tender offer for the securities is only being made pursuant to the Offer to Purchase dated 7 December 2005 and the related Letter of Transmittal.
The Offer to Purchase is available at www.ing.com
ING is a global financial institution of Dutch origin offering banking, insurance and asset
management to over 60 million private, corporate and institutional clients in more than 50 countries.
With a diverse workforce of about 114,000 people, ING comprises a broad spectrum of
prominent companies that increasingly serve their clients under the ING brand.
