AES readies launch of $1.05 billion term loan B for Tuesday

By Sara Rosenberg

New York, May 16 - AES Corp. is scheduled to hold a call on Tuesday to launch a $1.05 billion seven-year term loan B, according to a market source.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of DPL Inc., the parent company of the Dayton Power & Light Co., for $3.5 billion in cash, plus the assumption of $1.2 billion of net debt.

When the transaction was first announced, the company had said that its expects to issue $3.3 billion of new debt for the transaction, comprised of $2.05 billion of unsecured notes and/or a term loan at AES Corp. and $1.25 billion of senior unsecured notes at DPL.

Closing is expected in late 2011 or early 2012, subject to approval by DPL's shareholders and receipt of certain regulatory approvals.

AES is an Arlington, Va.-based generator and distributor of electricity. DPL is a Dayton, Ohio-based power supplier.

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