AES tenders for $300 million 7 3/8% notes due 2021, 8% notes due 2020

By Wendy Van Sickle

Columbus, Ohio, March 14 – AES Corp. began a cash tender offer to purchase up to a total of $300 million of its 7 3/8% senior notes due 2021 and its 8% senior notes due 2020, according to a press release.

For the $965,797,000 of 7 3/8% notes, the company is offering a total consideration of $1,135.00 per $1,000 principal amount. For the $469,482,000 of 8% notes, the company is offering a total consideration of $1,157.50 per $1,000 principal amount.

In each case, the total consideration includes a $30.00 early tender premium to be paid to holders who tender their notes by the early deadline of 5 p.m. ET on March 27.

The 7 3/8% notes have acceptance priority over the 8% notes. If the tender cap is exceeded, notes will be accepted for purchase on a pro rata basis.

The offer is set to expire at 11:59 p.m. ET on April 10.

Holders may withdraw valid tenders through 5 p.m. ET on March 27.

Early settlement is expected to occur on March 28 and final settlement on April 11.

The issuer will also pay accrued interest on the notes to, but excluding, the applicable settlement date.

Goldman Sachs & Co. (800 828-3182 or 212 902-6941) is the dealer manager.

Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) is the information and depository agent.

AES is a power company based in Arlington, Va.

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