AES wraps oversubscribed tender for up to $1.24 billion of 8¾%, 9%, 8¾% notes

By Jennifer Chiou

New York, Nov. 14 - AES Corp. announced the completion of its cash tender offer for up to $1.24 billion of three series of senior notes, which ended at midnight ET on Nov. 13.

Affected notes, in order of priority, were the company's $201.81 million of 8¾% senior notes due 2008, $600 million of 9% second-priority senior secured notes due 2015 and $1.2 billion of 8¾% second-priority senior secured notes due 2013.

At the deadline, the company said it received tenders from holders of $192.6 million of its 8¾% notes, $600.0 million of its 9% notes and $1.18 billion of its 8¾% second-priority notes.

Since the total amount of notes tendered exceeded the tender cap, AES said it accepted for purchase all 8¾% notes and all 9% notes while it accepted $447.4 million of its 8¾% second-priority notes, for a pro ration factor of 37.6714%.

The company paid $1,025.27 plus accrued interest for each $1,000 principal amount of the 8¾% notes due 2008 tendered by the early deadline of 5 p.m. ET on Oct. 29. The yield on the reference security was 4.087%, and the tender offer yield was 4.587%.

For the 9% notes, the total payout was $1,067.01 per $1,000 principal amount plus accrued interest. The yield on the reference security was 4.123%, and the tender offer yield was 4.623%.

For the 8¾% notes due 2013, the total payout was $1,063.03 per $1,000 principal amount plus accrued interest. The yield on the reference security was 4.123%, and the tender offer yield was 4.623%.

Those who tendered by 5 p.m. ET on Oct. 29 received the early tender premium of $30.00 per $1,000 principal amount, which is included in the payouts.

Pricing was set as of 2 p.m. ET on Oct. 29 using the yield of the 5 1/8% U.S. Treasury note due June 30, 2008 plus a fixed spread of 50 basis points for the 8¾% notes due 2008 and the 5 5/8% U.S. Treasury note due May 15, 2008 plus a spread of 50 bps for the 9% notes due 2015 and 8¾% notes due 2013.

The earliest call date for the 2008 notes is June 15, 2008 and for the 2015 notes and 2013 notes is May 15, 2008.

As of Oct. 29, investors had tendered $192,501,000 principal amount of 2008 notes, $598 million principal amount of 2015 notes and $1,188,039,000 principal amount of 2013 notes.

The early settlement date for the 8¾% notes due 2008 and the 9% notes due 2015 was Oct. 30. The final settlement date for all notes was Nov. 14.

AES said it could have increased or modified the tender cap.

Citi was the dealer manager (800 558-3745 or call collect 212 723-6106). Global Bondholder Services Corp. was the information agent (866 294-2200).

AES is an Arlington, Va.-based owner and operator of electric power generation and distribution businesses.

© 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.