AES begins tender offers, consent bids for up to $1.49 billion of three series of notes

By Rebecca Melvin

New York, May 15 – AES Corp. said it began tender offers for up to $1.485 billion aggregate principal amount of three series of its notes as well as consent solicitations to amend the notes’ indentures to eliminate restrictive covenants and events of default under the indentures and to shorten the notice requirements for optional redemption to three days from 30 days.

Covered by the tender offers are the company’s $500 million of 4% senior notes due 2021, $613 million of 4 7/8% senior notes due 2023 and $500 million of 4˝% senior notes due 2023, listed in order of priority acceptance level.

The maximum tender cap for the two 2023 series of notes is $970 million, and any 2021 notes will be accepted before the 2023 notes, and the 4 7/8% 2023 notes will be accepted before the 4˝% 2023 notes on an early tender basis and for notes tendered after the early tender date.

The total tender consideration for each $1,000 principal amount will be $1,026.70 for the 4% notes, $1,010.56 for the 4 7/8% notes and $1,024.75 for the 4˝% notes. The total payment includes a $30.00 early tender premium per $1,000 of notes tendered by 5 p.m. ET on May 29, the early tender date.

Those who tender after the early tender deadline will receive the total payment less the early tender premium.

The consent solicitations and the tender offers will end at 11:59 p.m. ET on June 12.

The company also will pay accrued interest up to but excluding the settlement date of May 29 for early tendered notes and June 16 for remaining tenders.

Tendered notes may be withdrawn by the early tender deadline.

The tender offers are conditioned on the company obtaining debt financing with enough proceeds, together with cash on hand and other available sources, to fund the offer, according to the company’s news release.

Credit Suisse Securities (USA) LLC (212 538-5828 collect) is the dealer manager and solicitation agent for the tender offers. Global Bondholder Services Corp. (attn: corporate actions, 212 430-3774 for banks and brokers or 866 470-4200) is the information and depositary agent.

AES is an Arlington, Va.-based electric company.

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