AES gets required consents for 8¾% notes

By Jennifer Chiou

New York, May 29 - AES Corp. announced that it received the needed consents for its 8¾% second-priority senior secured notes due 2013 after receiving tenders for $341.2 million of the notes as well as consents without tenders for $314.4 million of notes.

The solicitation ended at 5 p.m. ET on May 28.

The company solicited consents from holders of its 8¾% notes to proposed amendments to the indenture, which will eliminate many of the restrictive covenants in the indenture. Noteholders could have delivered consents without tendering their 8¾% notes.

As a result, AES said it received consents representing $655.6 million, or 87%, of the 8¾% notes, adding that it has entered into a supplemental indenture.

On May 14, the company began a cash tender offer for up to $377.03 million total of four series of senior notes, including the 8¾% notes.

In priority acceptance order, affected notes include up to $377.03 million of its $752.55 million of 8¾% notes, up to $240 million of its $467.31 million of 9½% senior notes due 2009, up to $180 million of its $422.67 million of 9 3/8% senior notes due 2010 and up to $120 million of its $306.81 million of 8 7/8% senior notes due 2011.

As of the early deadline, holders had tendered $312.8 million of the 9½% notes, $207.2 million of 9 3/8% notes and $175.2 million of 8 7/8% notes.

The offer ends at midnight ET on June 11. It began on May 14.

For each $1,000 principal amount, holders who tender will receive $1,043.75 for the 8¾% notes, $1,055.00 for the 9½% notes, $1,077.50 for the 9 3/8% notes and $1,065.00 for the 8 7/8% notes. All payouts include a $20.00 early participation payment for those who tender by 5 p.m. ET on May 28, and the payout for the 8¾% notes includes a $3.75 consent fee assuming that consents are delivered for a majority of notes.

AES is seeking consents from holders of a majority of the 8¾% notes.

Citi (800 558-3745 or call collect 212 723-6106) and Lehman Brothers (800 438-3242 or call collect 212 528-7581) are the dealer managers. Global Bondholder Services Corp. (866 873-7700 or call collect 212 430-3774) is the information agent and the depositary.

AES is an Arlington, Va.-based generator and distributor of electricity.

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