AES calls some 10% notes

New York, Dec. 12 - The AES Corp. (B2/B+) said that it has called $21.814 million principal amount of its outstanding 10% senior secured notes due 2005 for redemption.

AES said that the notes will be redeemed on a pro-rata basis on Jan. 12, 2004 at par plus accrued interest. AES issued $500 million of the notes in December 2002, the bulk of which are currently outstanding.

The company said that the redemption is being made out of "excess asset sale proceeds," as defined in the notes' indenture, and reflects the portion of asset sale proceeds allocable to the notes from AES' sale of its ownership in two generation businesses in Bangladesh.

On Dec. 11, AES announced that it had completed the sale of its ownership in AES Haripur, a 360MW gas-fired combined-cycle power project and AES Meghnaghat, a 450MW gas-fired combined-cycle power project, in a transaction valued at $448 million, with combined net equity proceeds of around $144 million, after the assumption of some $304 million of debt obligations of the two businesses being sold.

As previously announced, AES, an Arlington, Va.-based global power producer, said on Nov. 12 that it had called for redemption on Dec. 12 of $19.389 million principal amount of the 10% senior notes at par plus accrued interest, under the indentures' "excess asset sales proceeds" provision, reflecting the part of proceeds from sales in the fourth quarter up to that point required to be allocated to the notes.

Earlier it had called $7.06 million principal amount of the notes for redemption on Oct. 25 at par plus accrued interest under the excess asset sales proceeds indenture provision.

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