Published on 8/14/2017 in the Prospect News High Yield Daily.
New Issue: AES prices $500 million 10-year notes at par to yield 5 1/8%
By Paul A. Harris
Portland, Ore., Aug. 14 – AES Corp. priced a $500 million issue of 10-year senior notes (BB) at par to yield 5 1/8% in a quick-to-market trade on Monday, according to a term sheet which the company filed with the Securities and Exchange Commission.
The yield printed in the middle of the 5% to 5¼% yield talk, a market source said.
J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC and SG Americas Securities, LLC were the joint bookrunners.
The Arlington, Va.-based power company plans to use the proceeds to fund its concurrent tender offer for its 8% senior notes, with any remaining proceeds to be used to retire certain of its outstanding debt.
| Issuer: | AES Corp.
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2027
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, SG Americas Securities, LLC
|
| Co-managers: | BNP Paribas Securities Corp., HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., Loop Capital Markets LLC, Samuel A. Ramirez & Co., SMBC Nikko Securities America Inc.
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Spread: | 290 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Sept. 1, 2022, then callable at 102.563
|
| Trade date: | Aug. 14
|
| Settlement date: | Aug. 28
|
| Rating: | S&P: BB
|
| Distribution: | SEC registered
|
| Price talk: | 5% to 5¼%
|
| Marketing: | Quick to market
|
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