By Paul A. Harris
St. Louis, Oct. 9 - In a quick-to-market high-yield bond deal that quadrupled in size, AES Corp. placed a combined $2 billion of senior notes (B1/B/BB) in two tranches on Tuesday, according to a market source.
The Arlington, Va.-based international power producer priced a $500 million tranche of eight-year notes at par to yield 7¾% and a $1.5 billion tranche of 10-year notes, also at par, to yield 8%.
Both tranches of Rule 144A notes priced on top of the price talk.
Deutsche Bank Securities, Credit Suisse and Merrill Lynch & Co. were joint bookrunners for the issuance, which was upsized from $500 million and originally offered in a planned single tranche of 10-year notes.
Proceeds will be used to refinance debt, to fund growth investments and for general corporate purposes.
The covenants are the same as those of the 7¾% notes due 2014.
| Issuer: | AES Corp.
|
| Total amount: | $2 billion (upsized from $500 million)
|
| Security description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities, Credit Suisse, Merrill Lynch & Co.
|
| Trade date: | Oct. 9
|
| Settlement date: | Oct. 15
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Fitch: BB
|
| Distribution: | Rule 144A
|
|
|
| Eight-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2015
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 318 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps
|
| Change-of-control put: | 101.0
|
| Price talk: | 7¾% area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Oct. 15, 2017
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 334 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps
|
| Change-of-control put: | 101.0
|
| Price talk: | 8% area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
