AES gets tenders for $321.44 million 8% notes, accepts $217 million

By Angela McDaniels

Tacoma, Wash., Aug. 28 – AES Corp.’s tender offer for its 8% senior notes due 2020 was oversubscribed as of the early tender date, 5 p.m. ET on Aug. 25, and as a result the company will not accept any notes tendered after the early tender date, according to a company news release.

As previously reported, the company is tendering for up to $217 million principal amount of the notes. The tender offer began Aug. 14 and will officially end at 11:59 p.m. ET on Sept. 11.

Holders had tendered $321,442,000 principal amount, or 72.16%, of the $445,465,000 outstanding notes as of the early tender date. The company will accept $217 million of these notes on a pro rata basis using a proration factor of 67.8%.

The total purchase price is $1,162.60 for each $1,000 principal amount of notes. This amount includes an early tender premium of $30.00 per $1,000 principal amount.

The company also will pay accrued interest to but excluding the settlement date, which was expected to occur by Aug. 28.

The tender offer does not contain a minimum tender condition but does contain a financing condition. This condition was satisfied on Aug. 28 when the company settled a $500 million offering of 5 1/8% 10-year senior notes (BB).

J.P. Morgan Securities LLC (866 834-4666 or 212 834-3260) is the dealer manager. Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) is the information and depositary agent.

AES is an Arlington, Va.-based power company.

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