AES whispers $500 million 10-year notes in 6% area; deal could grow; pricing expected Wednesday

By Paul A. Harris

Portland, Ore., May 11 – AES Corp. is whispering a $500 million offering of 10-year senior notes in the 6% area, according to traders, who add that the deal could be upsized.

The public offering of notes is expected to price on Wednesday.

Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., BofA Merrill Lynch and J.P. Morgan Securities LLC are the joint bookrunners.

BNP Paribas Securities Corp., Credit Agricole CIB, HSBC and SG CIB are the co-managers.

The notes come with five years of call protection.

The Arlington, Va.-based power company plans to use the proceeds to repay debt, including a portion of its floating-rate notes due 2019.

If upsized, the additional proceeds from Wednesday’s notes offering would be used to take out more, and possibly all, of the floating-rate notes, which are callable at par, a trader said.

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