AES Argentina extends early participation date for 7¾% notes due 2024

By William Gullotti

Buffalo, N.Y., July 27 – Argentina’s AES Argentina Generacion SA reported the early participation results for its exchange offer for any and all of its 7¾% senior notes due 2024 (Cusips: 00107VAA1 and P1000CAA2) and subsequently extended the early participation date on Wednesday, according to a notice.

Early participation offer

As previously reported, 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.

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.

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.

Early results

As of the initial July 26 early participation date, AES Argentina received tenders totaling $129,099,000 under both options, representing 47.03% of the outstanding aggregate principal amount.

Of the tendered notes, $35,184,000 were tendered for exchange under Option A, representing 12.82% of the outstanding notes. $93,915,000 aggregate principal were tendered for exchange, representing 34.21% of the aggregate principal outstanding, under Option B.

Based on the aggregate principal amount tendered as of the original early participation date, eligible holders that tendered under Option A would receive (assuming no additional participation) approximately 73% and 27% of the Option A early consideration in cash and new notes, respectively.

The exchange consideration will be determined following the offer expiration.

AES Argentina decided to extend the early participation deadline to the expiration date of the offer itself, which is scheduled for 5 p.m. ET on Aug. 10.

The withdrawal date was not extended, and any notes validly tendered under the offer may no longer be withdrawn.

Settlement likewise remains expected on Aug. 16 unless the exchange offer is extended.

As previously reported, 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.

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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