AES updates early tenders in oversubscribed offer for four note series

By Susanna Moon

Chicago, May 9 - AES Corp. announced the early results of its tender offer to purchase four series of notes, which was oversubscribed as of 5 p.m. ET on May 8, the early tender date.

The company said it received tenders for the following amounts so far:

• $267,078,000, or 53.42%, of the $500 million 7¾% senior notes due 2014;

• $328,943,000, or 65.79%, of the $500 million 7¾% senior notes due 2015;

• $166,174,000, or 31.06%, of the $535 million of 9¾% senior notes due 2016; and

• $377.82 million, or 25.19%, of the $1.5 billion of 8% senior notes due 2017.

As noted before, the company began tender offers on April 25 for any and all of its outstanding $500 million of 7¾% senior notes due 2014 and up to $300 million principal amount of three series of notes.

The total purchase price will be $1,055.53 for each $1,000 principal amount of 7¾% notes due 2014.

In the maximum tender offers, the company planned to purchase up to $100 million each of the following three note series:

• 7¾% notes due 2015 with a total payment of $1,155.00 for each $1,000 principal amount;

• 9¾% notes due 2016 at $1,222.50 per $1,000 principal amount; and

• 8% notes due 2017 at $1,205.00 per $1,000 of notes.

As previously noted, the total payment includes $30.00 for each $1,000 principal amount of notes tendered by the early tender date.

Holders who tender their notes after the early deadline will receive the total payment less the early payment.

The company also will pay accrued interest up to but excluding the settlement date.

The tender offers will continue until 11:59 p.m. ET on May 22, with final settlement slated for May 23.

AES previously said that if the offers were oversubscribed, it would accept the notes for purchase on a prorated basis.

The company also said before that it may settle early tendered notes before the offer ends.

Tendered notes may no longer be withdrawn, as of the early tender deadline.

The offers are conditioned on obtaining at least $500 million of proceeds from financing, which has now been satisfied, but are not subject to any minimum tender condition, the company noted.

The company came to Thursday's primary with a $500 million sale of 4 7/8% senior notes due May 15, 2023, which priced at par on April 25, as reported by Prospect News.

Morgan Stanley & Co. LLC (attn: liability management group, 800 624-1808 or collect 212 761-1057) is the dealer manager. Global Bondholder Services Corp. (attn.: corporate actions, 866 387-1500 or for banks and brokers 212 430-3774) is the information and depositary agent.

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

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