By Paul Deckelman
New York, Feb. 10 - The AES Corp. priced a quickly-shopped $500 million offering of 10-year 7¾% senior notes at 98.288 to yield 8%, according to syndicate sources.
The yield was higher than talk of a figure in the 7¾% area.
The off-the-shelf offering came to market via a large underwriting team led by Citigroup and Deutsche Bank Securities.
The notes are non-callable for the life of the issue, but for a make-whole call provision.
Banc of America Securities Inc. and UBS Investment Bank were joint lead managers. ABN AMRO Inc.; BNP Paribas; Credit Lyonnais Securities (USA); Credit Suisse First Boston; Lehman Brothers; and Merrill Lynch and Co. were co-managers on the deal.
AES, an Arlington, Va.-based international power producer, plans to use the net proceeds of the offering to repay part of its term loan debt.
| Issuer: | The AES Corp.
|
| Amount: | $500 million
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| Security description: | Senior notes
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| Maturity: | March 1, 2014
|
| Bookrunners: | Citigroup and Deutsche Bank Securities
|
| Lead managers: | Banc of America Securities Inc., UBS Investment Bank
|
| Co-managers: | ABN AMRO Inc.; BNP Paribas; Credit Lyonnais Securities (USA); Credit Suisse First Boston; Lehman Brothers; and Merrill Lynch and Co.
|
| Coupon: | 7¾%
|
| Price: | 98.288
|
| Yield: | 8%
|
| Spread: | 390 basis points over 10-year Treasury
|
| Call: | Make-whole call at T+75 bps; otherwise non-callable.
|
| Settlement date: | Feb. 13, 2004
|
| Ratings: | Moody's: B3
|
| S&P: B-
|
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