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AEGON N.V. Message Board

  • s.lou23 s.lou23 Jan 26, 2012 12:36 PM Flag


    8.00% not a good sign, this type of pref. shares are not widely scooped up,better to own the common.

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    • Sorry, should also have included the following 2nd paragraph of the AEH prospectus:

      The Capital Securities are perpetual securities that have no fixed maturity or redemption date. However, at our option, we may redeem the Capital Securities in whole (but not in part) at their aggregate principal amount, together with any Outstanding Payments (as defined herein), on June 15, 2015 or any interest payment date thereafter, and upon the occurrence of certain tax and regulatory events described in this prospectus supplement under "Description of the Capital Securities." The Capital Securities will be issued in denominations of $25 and will constitute direct, unsecured and subordinated securities.

      Note that if they choose to exercise their option to redeem the securities they are obligated to pay both the "aggregate principal amount" and "any Outstanding Payments" i.e. any unpaid dividends. This is by definition cumulative.

    • Thanks for the link

      Here is the 3rd paragraph of the prospectus for AEH:

      The Capital Securities will bear interest at a rate of 6.375% per annum on their outstanding principal amount from (and including) the issue date, payable in U.S. dollars quarterly in arrears on March 15, June 15, September 15 and December 15, commencing on September 15, 2005, subject to the conditions described in this prospectus supplement under "Description of the Capital Securities." You will receive interest payments on your Capital Securities only in cash. As more fully described in this prospectus supplement, we may defer interest payments for any period of time; provided, however, that such deferred payments will become immediately due and payable if we make any payment on, or repurchase or redeem (subject to certain exceptions), our Junior Securities or Parity Securities (each as defined herein). Although you will always receive cash in satisfaction of any payments, we may, in certain circumstances, elect and, in the case of deferred payments, be required to satisfy our obligation to make such payments in cash by issuing our Common Shares which, when sold, will provide a sufficient amount of cash necessary to make all such payments.

      The info in this paragraph regarding obligations to make deferred payments is certainly consistent with the Fidelity labeling AEH as cumulative. Please let us all know if there is other language in the prospectus that is counter to this.


    • AEK is non cumulative regardless of what Fidelity says.

      Check to read the IPO Prospectus

    • ruudkrul Jan 26, 2012 2:59 PM Flag

      Why 8%?
      why so high?

      • 1 Reply to ruudkrul
      • Want the cash to run everyday operations,it's a lure to bring in cash and then not pay divvy.See the divvy is non cumulative this means when they decide to miss paying divvy the company will not have to make up the missed divvy payments when they resume payments,can you lose money buying it? no not likely ,but you would do better buying and holding aeg common over the next 10 years IMHO.

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