Ipalco wraps, prices tender offer for $331.09 million of 8 5/8% notes

By Susanna Moon

Chicago, May 18 - Ipalco Enterprises, Inc. said investors tendered $331.09 million of its $375 million outstanding principal amount of 8 5/8% senior secured notes due Nov. 14, 2011 by the offer deadline at 5 p.m. ET on May 17.

The company will pay $1,039.17 for each $1,000 principal amount of notes, according to a company press release.

Pricing was set using the yield to maturity of the 1% Treasury note due Oct. 31, 2011 plus 50 basis points as of 2 p.m. ET on May 17. The reference yield was 0.09%, and the tender offer yield was 0.59%.

The company also will pay accrued interest up to but not including the settlement date, which was May 18.

Bank of America Merrill Lynch (attn: debt advisory services, 888 292-0070 or collect 980 388-9217) is the dealer manager. D.F. King & Co., Inc. (800 549-6697 or for banks and brokers 212 269-5550) is the tender agent and information agent.

Funding for the offer came from an issue of $400 million of 5% senior secured notes due 2018.

Proceeds from the offering will also be used to finance the redemption of $43.91 million principal amount of 8 5/8% notes that remain outstanding after the completion of the tender offer.

Ipalco is a holding company based in Indianapolis that, through its principal subsidiary Indianapolis Power & Light Co., a regulated electric utility, engages primarily in generating, transmitting, distributing and selling electric energy.

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