Published on 5/1/2003 in the Prospect News High Yield Daily.
New Issue: AES sells $1.8 billion, 10-year notes yield 8¾%, 12-year notes yield 9%
By Paul A. Harris
St. Louis, May 1 - AES Corp. sold $1.8 billion of new second priority senior secured notes on Thursday afternoon, according to a syndicate source.
The Arlington, Va. energy company's bond sale came at the high end of the $1.4-$1.8 billion range announced Wednesday, the source noted.
The 10-year tranche due May 15, 2013 priced at par to yield 8¾%. Price talk was for a yield in the 8¾% area.
The 12-year tranche due May 15, 2015 priced at par to yield 9%. Price talk was for a yield in the 9% area.
Citigroup was the bookrunner on the Rule 144A deal. UBS Warburg was joint lead manager. The co-managers were Credit Lyonnais, Deutsche Bank Securities Inc., Lehman Brothers, SG Cowen and BTM
Proceeds will be used to fund AES' cash tender for its outstanding senior and subordinated notes and pay down $475 million of the senior bank facility.
| Issuer: | AES Corp.
|
| Amount: | $1.8 billion
|
| Security description: | Second priority senior secured notes
|
| Managers: | Citigroup (books), UBS Warburg (joint lead)
|
| Co-managers: | Credit Lyonnais, Deutsche Bank Securities, Lehman Brothers, SG Cowen, BTM
|
| Settlement date: | May 8, 2003
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
|
|
| 10-Year Tranche
|
| Amount: | $1.2 billion
|
| Maturity: | May 15, 2013
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Spread: | 494 basis points
|
| Call features: | Callable on May 15, 2008 at 104.375, 102.917, 101.458, par on May 15, 2011 and thereafter
|
| Rule 144A Cusip: | 00130HBA2
|
| Price talk: | 8¾% area
|
|
|
| 12-Year Tranche
|
| Amount: | $600 million
|
| Maturity: | May 15, 2015
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 496 basis points
|
| Call feautres: | Callable on May 15, 2008 at 104.5, 103, 101.5, par on May 15, 2011 and thereafter
|
| Rule 144A Cusip: | 00130HBB0
|
| Price talk: | 9% area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
