AES upsizes tender offer to up to $1.58 billion of notes

Chicago, May 18 – AES Corp. has upsized its previously announced tender offer to $1.584 billion combined aggregate principal price from $1.485 billion, according a press release.

The company is also increasing the aggregate purchase price and tender cap of its $613 million of 4 7/8% 2023 notes and $500 million of 4˝% 2023 notes to $1.069 billion from $970 million, with a second and third priority level, respectively.

The rest of the terms remain unchanged.

As previously reported, AES’ $500 million of 4% senior notes due 2021 are part of the tender offer and have no tender cap and a priority level one.

There is also a consent solicitation 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.

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Tendered notes may be withdrawn by the early tender deadline.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 were conditioned on the company obtaining debt financing with enough proceeds, together with cash on hand and other available sources, to fund the offer.

AES priced a $900 million offering of 3.3% senior secured first-lien notes due 2025 with a tranche of $700 million 3.95% senior secured first-lien notes due 2030 on May 15.

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

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

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