By Paul A. Harris
St. Louis, May 14 - AES Corp. priced an upsized $625 million issue of 12-year senior notes (B1/BB-) at par to yield 8% on Wednesday, according to an informed source.
The yield was printed at the wide end of the 7 7/8% price talk.
The deal was upsized from $600 million.
Citigroup, Banc of America Securities LLC, Goldman Sachs & Co. and J.P. Morgan Securities Inc. were joint bookrunners for the Rule 144A with registration rights issue. Barclays Capital, Lehman Brothers, Scotia Capital, SG Corporate & Investment Banking and Wedbush Morgan were co-managers.
Proceeds will be used to fund the tender and consent solicitation and repay the company's junior subordinated convertible debentures.
The issuer is an Arlington, Va.-based generator and distributor of electricity.
| Issuer: | AES Corp.
|
| Amount: | $625 million, increased from $600 million
|
| Maturity: | June 1, 2020
|
| Security description: | Senior notes
|
| Bookrunners: | Citigroup, Banc of America Securities LLC, Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Co-managers: | Barclays Capital, Lehman Brothers, Scotia Capital, SG Corporate & Investment Banking, Wedbush Morgan
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 410 bps
|
| Call protection: | Non-callable with make-whole at Treasuries plus 50 bps
|
| Trade date: | May 14
|
| Settlement date: | May 19
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 7 7/8% area
|
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