AES gets tenders for $322,000 more 7¾% notes in any and all offer

By Susanna Moon

Chicago, May 23 - AES Corp. said holders tendered and the company accepted for purchase $267.4 million, or 53.48%, of its $500 million 7¾% senior notes due 2014 with $322,000 of the notes tendered after the early offer deadline.

As noted before, the company began tender offers on April 25 for any and all of the 7¾% notes and up to $300 million principal amount of three other series of notes. The tender offer cap for the other note series was later lifted and the expiration extended.

The tender offer for the 7¾% notes ended at 11:59 p.m. ET on May 22, with final settlement set for May 23.

Of the tendered 7¾% notes, $267,078,000, or 53.42%, of the notes were tendered by 5 p.m. ET on May 8, the early tender date. Those notes were purchased on May 17.

As noted before, the total purchase price was $1,055.53 for each $1,000 principal amount of 7¾% notes due 2014. The total payment includes $30.00 for each $1,000 principal amount of notes tendered by 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.

Maximum offer details

On May 14, AES lifted the tender offer cap for the other three series of notes to $660,174,000 and extended the offer until 11:59 p.m. ET on May 28.

Holders tendered the following amounts of notes in the maximum offer by the early tender date:

• $328,943,000, or 65.79%, of the $500 million 7¾% senior notes due 2015;

• $166,174,000, or 31.06%, of the $535 million of 9¾% senior notes due 2016; and

• $377.82 million, or 25.19%, of the $1.5 billion of 8% senior notes due 2017.

The company accepted for purchase $144 million of the 7¾% notes, all $166,174,000 of the 9¾% notes and $350 million of the 8% notes on May 17.

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

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

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

• 8% 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 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.

Tendered notes may no longer be withdrawn, as of the early tender deadline.

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

The company came to Thursday's primary with a $500 million sale of 4 7/8% senior notes due May 15, 2023, which priced at par on April 25, 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.

The issuer is an Arlington, Va.-based power company.

© 2015 Prospect News.
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