AES tenders for all 8%, 7 3/8% notes, $700 million of two more series

By Susanna Moon

Chicago, March 1 – AES Corp. is tendering for its $228,465,000 of 8% senior notes due 2020 and $689,814,000 of 7 3/8% senior notes due 2021.

Along with the tenders, the company also is soliciting consents to amend the notes to shorten the notice required to call each series to three business days from 30 days, according to a company announcement.

The total purchase price for each $1,000 principal amount will be $1,113 for the 8% notes and $1,133.75 for the 7 3/8% notes.

The total amount includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early deadline of 5 p.m. ET on March 14.

Holders also will receive accrued interest to but excluding the settlement date, which will be March 15 for early tendered notes and March 29 for any remaining tenders.

The tender offer and consent solicitations will end at 11:59 p.m. ET on March 28.

Tenders may be withdrawn at any time before the early deadline.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) is the information and depositary agent.

Capped offer

AES also is tendering for up to $700 million principal amount of its $737,726,000 of 5½% senior notes due 2024 and its $573,217,000 of 5½% senior notes due 2025, according to a separate announcement.

The offer for the notes due 2025 will be capped at $200 million.

The company also is soliciting consents for its 5½% senior notes due 2024 to shorten the call notice required to three business days from 30 days.

The total purchase price for each $1,000 principal amount will be $1,055 for the notes due 2024 and $1,052.50 for the notes due 2025.

The total amount includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early deadline of 5 p.m. ET on March 14.

Holders also will receive accrued interest to but excluding the settlement date.

The tender offer and consent solicitations will end at 11:59 p.m. ET on March 28.

Tenders may be withdrawn at any time before the early deadline.

The final settlement date has been set for March 29.

The tender offer is conditioned upon the company securing enough proceeds from the sale of the 51% equity interest in the Masin-AES Pte. Ltd. subsidiary.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) is the information and depositary agent.

AES also plans to price $1 billion of senior notes in two tranches in a Thursday drive-by, as reported by Prospect News.

The Arlington, Va.-based power company plans to use the proceeds to fund tender offers for its 8% senior notes due 2020 and 7 3/8% senior notes due 2021.

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