By Cristal Cody
Tupelo, Miss., May 15 – AES Corp. priced a $1.6 billion Rule 144A and Regulation S two-part offering of senior secured first-lien notes (Baa3/BBB-) on Friday, according to a market source.
The company sold $900 million of 3.3% five-year notes at a spread of 300 basis points over Treasuries.
Initial price talk was in the 337.5 bps spread area.
A $700 million offering of 3.95% 10-year notes priced with a Treasuries plus 337.5 bps spread.
The notes were talked to print at the 375 bps over Treasuries area.
BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the active bookrunners.
Passive bookrunners were Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG, Santander Investment Securities Inc. and SMBC Nikko Securities America, Inc.
The company held fixed income investor calls for the offering on Wednesday.
Proceeds will be used to purchase up to $1,485,000,000 of 4% senior notes due 2021, 4.875% senior notes due 2023 and 4.5% senior notes due 2023 in tender offers, to retire debt and for general corporate purposes.
The issuer is an Arlington, Va.-based power company.
| Issuer: | AES Corp.
|
| Amount: | $1.6 billion
|
| Description: | Senior secured first-lien notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC (active); Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG, Santander Investment Securities Inc. and SMBC Nikko Securities America, Inc. (passive)
|
| Trade date: | May 15
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Fixed income investor calls
|
|
|
| Five-year notes
|
| Amount: | $900 million
|
| Maturity: | July 15, 2025
|
| Coupon: | 3.3%
|
| Spread: | Treasuries plus 300 bps
|
| Price guidance: | Treasuries plus 337.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | July 15, 2030
|
| Coupon: | 3.95%
|
| Spread: | Treasuries plus 337.5 bps
|
| Price guidance: | Treasuries plus 375 bps area
|
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