AES tenders for 7¾% notes due 2014, $300 million of three other series

By Susanna Moon

Chicago, April 25 - AES Corp. began tender offers for any and all of its outstanding $500 million of 7¾% senior notes due 2014 and up to $300 million principal amount of three series of notes.

The total purchase price will be $1,055.53 for each $1,000 principal amount of 7¾% notes due 2014.

In the maximum tender offers, the company plans to purchase up to $100 million each of the following three note series:

• $500 million of 7¾% senior notes due 2015 with a total payment of $1,155.00 for each $1,000 principal amount;

• $535 million of 9¾% senior notes due 2016 at $1,222.50 per $1,000 principal amount; and

• $1.5 billion of 8% senior notes due 2017 at $1,205.00 per $1,000 of notes.

The total payment includes $30.00 for each $1,000 principal amount of notes tendered by 5 p.m. ET on May 8, the early tender date.

Holders who tender their notes after the early deadline will receive the total payment less the early payment.

The company also will pay accrued interest up to but excluding the settlement date.

The tender offers will end at 11:59 p.m. ET on May 22, with final settlement slated for May 23.

If the offers are oversubscribed, the company will accept the notes for purchase on a prorated basis, according to a company press release.

AES said it may settle early tendered notes before the offer ends.

Tendered notes may be withdrawn by the early tender deadline.

The offers are conditioned on obtaining at least $500 million of proceeds from financing but are not subject to any minimum tender condition, the company noted.

The Arlington, Va.-based power company plans to price $500 million of senior notes due 2023, as reported by Prospect News.

Morgan Stanley & Co. LLC (attn: liability management group, 800 624-1808 or collect 212 761-1057) is the dealer manager. Global Bondholder Services Corp. (attn.: corporate actions, 866 387-1500 or for banks and brokers 212 430-3774) is the information and depositary agent.

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