AES settles early tenders, ups cap in offer for four series of notes

By Jennifer Chiou

New York, May 14 - AES Corp. announced the early acceptance amounts in its offer for four series of notes.

For tenders received as of 5 p.m. ET on May 8, the early tender date, the company accepted the following:

• All $267,078,000 of tenders for its $500 million of 7¾% senior notes due 2014;

• $144 million of the $328,943,000 of tenders for the $500 million of 7¾% senior notes due 2015;

• All $166,174,000 of tenders for the $535 million of 9¾% senior notes due 2016; and

• $350 million of the $377.82 million of tenders for the $1.5 billion of 8% senior notes due 2017.

AES also announced that it has increased the tender cap for the 7¾% notes due 2015, the 9¾% notes and the 8% notes to $660,174,000 from $300 million.

As a result of the change, the expiration date of the tender offers for the capped securities will be extended to 11:59 p.m. ET on May 28.

The offer for the 7¾% notes due 2014 is still set to end at 11:59 p.m. ET on May 22.

As noted before, the company began tender offers on April 25 for any and all of its outstanding $500 million of 7¾% senior notes due 2014 and up to a maximum principal amount of three series of notes.

The total purchase price will be $1,055.53 for each $1,000 principal amount of 7¾% notes due 2014.

In the maximum tender offers, the company originally planned to purchase up to $100 million each of the following three note series:

• 7¾% notes due 2015 with a total payment of $1,155.00 for each $1,000 principal amount;

• 9¾% notes due 2016 at $1,222.50 per $1,000 principal amount; and

• 8% notes due 2017 at $1,205.00 per $1,000 of notes.

The cap is now $144 million for the 7¾% notes due 2015, $166,174,000 for the 9¾% notes and $350 million for the 8% notes.

As previously noted, the total payment includes $30.00 for each $1,000 principal amount of notes tendered by the early tender date.

Holders who tender their notes after the early deadline will receive the total payment less the early payment.

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

Early settlement is slated for May 17, with final settlement on May 23.

AES previously said that if the offers were oversubscribed, it would accept the notes for purchase on a prorated basis.

The company also said before that it may settle early tendered notes before the offer ends.

The offers are conditioned on obtaining at least $500 million of proceeds from financing, which has now been satisfied, but are not subject to any minimum tender condition, the company noted.

The company came to Thursday's primary with a $500 million sale of 4 7/8% senior notes due May 15, 2023, which priced at par on April 25, as reported by Prospect News.

Morgan Stanley & Co. LLC (attn: liability management group, 800 624-1808 or collect 212 761-1057) is the dealer manager. Global Bondholder Services Corp. (attn.: corporate actions, 866 387-1500 or for banks and brokers 212 430-3774) is the information and depositary agent.

The issuer is an Arlington, Va.-based power company.

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