ING Group announced today the successful completion of the tender offer to buy back legacy debt securities of two predecessors of its U.S. subsidiary, Lion Connecticut Holdings Inc. Debt securities with a total principal or liquidation amount of US$ 541 million were purchased in the tender offer, which expired at 5 pm New York time on 15 December.
The aggregate payment for the purchased securities, which will total US$ 666 million (EUR 560 million), will be refinanced with senior debt from ING Verzekeringen NV, a parent company of Lion Connecticut Holdings.
The transaction will allow ING 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 buyback will result in a one-off accounting loss of approximately EUR 66 million after tax (EUR 108 million before tax), which will be booked in the fourth quarter of 2005.
The settlement of the tender offer will take place on Tuesday 20 December 2005.
|
Original Issuer |
Title of Securities |
CUSIP No. |
Amount Outstanding |
Amount Tendered |
Offer Price |
Refinance Amount |
|
Aetna Services, Inc. (formerly Aetna Life & Casualty Co.) |
6.750% Debentures due 15 September 2013 |
008117AD5 |
$200 million |
$61.3 million |
$1,100.80 |
|
|
Aetna Services, Inc. (formerly Aetna Life & Casualty Co.) |
7.250% Debentures due 15 August 2023 |
008117AG8 |
$200 million |
$37.0 million |
$1,203.10 |
$44.5 million |
|
Aetna Services, Inc. (formerly Aetna Life & Casualty Co.) |
7.625% Debentures due 15 August 2026 |
008117AH6 |
$450 million |
$214.9 million |
$1,265.48 |
$272.0 million |
|
Aetna Services, Inc. (formerly Aetna Life & Casualty Co.) |
6.970% Debentures due 15 August 2036 |
008117AJ2 |
$299 million |
$191.1 million |
$1,214.11 |
$232.0 million |
|
Equitable of Iowa Companies Capital Trust II |
8.424% Series B Capital Securities due 1 April 2027 |
294514AC8 |
$50 million |
$37.0 million |
$1,354.00 |
$50.1 million |
|
Total |
|
|
$1.2 billion |
$541.3 million |
|
$666.1 million |
|
Press enquiries: ING Group
Dorothy Hillenius, +31 20 541 6522, dorothy.hillenius@ing.com |
This announcement is not an offer to purchase or the solicitation of an offer to sell any securities.
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.
