AES lifts tender offer cap to $625 million, extends expiration date

By Marisa Wong

Madison, Wis., March 4 - AES Corp. said it further increased the cap of the tender offers for three series of its notes to $625 million and extended the expiration of the offers to 11:59 p.m. ET on March 17.

On Monday, the company increased the tender cap to $415 million from $300 million.

As of 5 p.m. ET on Feb. 28, the early tender date, 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 29.9%, 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.

The tender offers began on Feb. 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Tendered notes may no longer be withdrawn, as of the early tender deadline.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 AES obtaining debt financing with enough proceeds to fund the offer. On Tuesday the company priced an upsized $750 million offering of 5½% senior notes. The deal is expected to settle on Friday.

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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