AES gives early tenders for any-and-all, capped offers for four notes

By Susanna Moon

Chicago, March 15 – AES Corp. said holders had tendered $142,096,000, or 62.20%, of its $228,465,000 8% senior notes due 2020 and $625,793,000, or 90.72%, of its $689,814,000 7 3/8% senior notes due 2021 as of the early deadline at 5 p.m. ET on March 14.

As a result, AES secured the needed 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 notice.

The company began tendering for the notes on March 1 for a total purchase price per $1,000 principal amount of $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.

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 continue until 11:59 p.m. ET on March 28.

Tenders may not be withdrawn after the early deadline.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 was 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.

As of the early deadline at 5 p.m. ET on March 14, holders had tendered $670,762,000, or 90.92%, of the notes due 2024 and $378,303,000, or 66%, of the notes due 2025.

As previously announced, the offer for the notes due 2025 will be capped at $200 million.

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

Because the offer has been oversubscribed as of the early deadline, the 2025 notes will be accepted on a pro rata basis, using a proration factor of about 8%, and notes tendered after the early deadline will not be accepted for purchase, according to a separate announcement.

Settlement is expected to occur by March 29.

The company also was soliciting consents for its 5½% senior notes due 2024 to shorten the call notice required to three business days from 30 days and obtained the needed consents to amend each series.

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.

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

Tenders may not be withdrawn at after the early deadline.

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 planned to price $1 billion of senior notes in two tranches, as reported.

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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