AES gets consents, early tenders on notes due 2025, 2026, 2027

By Taylor Fox

New York, Dec. 4 – AES Corp. announced the early results of its tender offers to purchase for cash any and all of its $544 million outstanding 5.5% senior notes due 2025 (Cusip: 00130HBW4), $500 million outstanding 6% senior notes due 2026 (Cusip: 00130HBX2) and $500 million outstanding 5.125% senior notes due 2027 (Cusip: 00130HBY0), according to a news release.

As of the 5 p.m. ET Dec. 3 early tender date, holders had tendered $436,334,000, or 80.21%, of the 2025 notes, $400,806,000, or 80.16%, of the 2026 notes and $458,254,000, or 91.65%, of the 2027 notes.

AES said it received the required consents from holders of a majority in principal amount of each series of notes to amend the indenture governing the securities. As announced on Nov. 19, AES is seeking to eliminate substantially all of the restrictive covenants and events of default in the indentures and to shorten the minimum notice requirements for optional redemption with respect to the securities from 30 days to three business days.

AES expects to promptly enter into a supplemental indenture effecting the proposed amendments, which is binding to all remaining holders of each series of the securities.

As previously reported, AES is offering a total consideration per $1,000 principal amount of $1,030.50 for the 2025 notes, $1,053.60 for the 2026 notes and $1,101.95 for the 2027 notes.

Holders who tendered notes prior to the early tender deadline will receive the total consideration, which includes an early tender premium of $30 per $1,000 of notes tendered.

Payments for securities purchased will include interest.

The early settlement date is expected to be Dec. 7.

The consent solicitation and offers will expire at 11:59 p.m. ET Dec. 17.

The final settlement date is expected to be Dec. 21.

The tender offers are not conditioned on any minimum amount being tendered but are subject to a financing condition that was satisfied Dec. 4. AES completed new financing in the form of long-term senior debt securities in an aggregate principal amount of $1.8 billion.

BofA Securities Inc. (980 387-3907; debt_advisory@bofa.com) is the dealer manager and solicitation agent.

Global Bondholder Services Corp. (212 430-3774, 866 470-4200) is the information agent and depositary agent.

The issuer is an Arlington, Va.-based power company.

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