AES counts early tenders in oversubscribed offer; cap now $415 million

By Susanna Moon

Chicago, March 3 - AES Corp. said it lifted the tender offer cap to up to $415 million aggregate principal amount of three series of its notes. The cap was lifted from $300 million.

As of 5 p.m. ET on Feb. 28, investors had tendered the following amount of notes, listed in order of priority acceptance level:

• $711,993,000, or 61.91%, of the company's $1.15 billion of 7¾% senior notes due 2015;

• $245.1 million, or 68.85%, of the $356 million of 9¾% senior notes due 2016; and

• $110,286,000, or 29.90%, of the $368,826,000 of 8% senior notes due 2017.

Because the offer has been oversubscribed, AES expects to purchase the tendered 7¾% notes on a prorated basis on March 7 and to return any of the tendered 9¾% notes or 8% notes, with acceptance priority levels 2 and 3, respectively, according to a company press release.

AES said on Feb. 14 that it began tender offers for up to $300 million of the three series of notes.

The tender offers will end at 11:59 p.m. ET on March 14.

The total purchase price for each $1,000 principal amount will be $1,205 for the 7¾% notes, $1,111.80 for the 9¾% notes and $1,185.21 for the 8% notes. The total payment includes a $30.00 early tender premium per $1,000 of notes tendered by the early tender date.

Those who tender after the early tender deadline will receive the total payment less the early tender premium.

The company also will pay accrued interest up to but excluding the settlement date.

Tendered notes may no longer be withdrawn, as of the early tender deadline.

The tender offers are conditioned on the company obtaining debt financing with enough proceeds to fund the offer.

Goldman, Sachs & Co. (attn: liability management group, 800 828-3182, 212 902-6941 collect) and Credit Suisse Securities (USA) LLC (attn: liability management group, 800 820-1653, 212 325-2476 collect) are the dealer managers. Global Bondholder Services Corp. (attn: corporate actions, 212 430-3774 for banks and brokers or 866 470-4200) is the information and depositary agent.

AES is an Arlington, Va.-based electric company.

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