AES Argentina to swap 7¾% notes due 2024 for 9½% notes due 2027, cash

By Devika Patel

Knoxville, Tenn., July 13 – Argentina’s AES Argentina Generacion SA announced it has launched an exchange offer for any and all of its 7¾% senior notes due 2024 (Cusips: 00107VAA1 and P1000CAA2).

The company is offering a new series of 9½% notes due 2027 and a cash consideration for the old notes.

Under the terms of the offer, holders whose notes are tendered and accepted will receive one of two payment options, plus accrued interest, in exchange for the old notes.

Under Option A, holders will receive a combination of the early A cash consideration and the applicable early A new notes consideration or, solely, the early A cash consideration, depending on the amount of old notes tendered by the early participation date, 5 p.m. ET on July 26, which is also the withdrawal deadline.

Noteholders who tender under Option A after the early deadline will receive $1,000 of new notes per $1,000 of old notes tendered and accepted, but no cash consideration.

The total early A cash consideration will be an amount in cash equal to the lesser of $30.5 million, 20% of the total amount of old notes tendered and accepted, up to a maximum amount of $30.5 million, and the total amount of old notes tendered and accepted under Option A prior to the early participation date.

The early A new notes consideration for each holder whose notes are accepted under Option A at or prior to the early participation date will be an amount of new notes equal to a principal amount resulting from multiplying the difference between $1,000 and the early A cash consideration by 1.02.

Under Option B, holders will receive $1,050 of new notes per $1,000 of old notes tendered and accepted.

Noteholders who tender under Option B after the early deadline will receive $1,000 of new notes per $1,000 of old notes tendered and accepted, and no cash consideration.

The consideration for notes tendered after the early participation date either under Option A or Option B is the same.

If less than 20% of old notes are tendered under Option A before the early participation date, the difference between the $30.5 million total cash consideration and the aggregate early A cash consideration will be paid to holders who tender under Option B before the early participation date.

The offer will expire at 5 p.m. ET on Aug. 10.

Settlement is expected on Aug. 16.

Consummation of the exchange offer is conditioned upon at least $192.15 million of the notes being tendered for exchange. The purpose of the exchange offer is to extend the maturity of the company’s debt obligations.

Morrow Sodali International LLC (203 609 4910, 44 20 4513 6933 or AES@investor.morrowsodali.com) is the information and exchange agent.

Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745), HSBC Securities (USA) Inc. (888 HSBC-4LM or 212 525-5552), J.P. Morgan Securities LLC (866 846-2874 or 212 834-7279) and Santander US Capital Markets LLC (212 940-1442 or 855 404-3636) are the dealer managers.

The electricity provider is based in Buenos Aires.

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