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Aegon Said to Seek 2.2 Billion Euros of Loans to Refinance

Dec. 7 (Bloomberg) -- Aegon NV, the Dutch insurer that owns Transamerica Corp., is seeking as much as 2.2 billion euros ($2.95 billion) of loans to refinance debt maturing next year, according to three people with direct knowledge of the deal.

The five-year facility consists of a 1 billion-euro revolving credit line, and a second for as much as 1.2 billion euros that includes the option to issue letters of credits, said two of the people, who declined to be identified because the terms are private. The loans are being arranged by Bank of America Corp. and Citigroup Inc. and proceeds will refinance a 3 billion-euro revolving credit signed in 2005 that is due to mature in September 2012.

“Aegon is currently approaching its banks to renew this facility,” company spokesman Dick Schiethart said in an e-mailed response to questions. “We are now contemplating replacing it with one of 2 billion euros.”

The Hague, Netherlands-based insurer is rated A3 by Moody’s Investors Service and A- by Standard & Poor’s. Investment-grade companies typically maintain credit lines to fund day-to-day operations or to back sales of other types of debt such as short-term commercial paper. They don’t usually draw on the loans.

Money in a revolving credit can be borrowed again once it’s repaid.

To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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