By Paul A. Harris
St. Louis, March 30 - AES Corp. priced an upsized $535 million issue of 9¾% seven-year senior notes (B1/BB-/BB) at 93.977 to yield 11% in a quick-to-market Monday transaction, according to informed sources.
The deal went exceptionally well despite the market backdrop on Monday, a syndicate source said, referring in part to a big sell-off in equities in which the S&P 500 index dropped by nearly 3.5%.
The yield was printed on top of the 11% area price talk.
The face amount of the deal was upsized from $350 million.
The sale generated about $502.777 million of proceeds.
Banc of America Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc. and Credit Suisse were joint bookrunners for the Rule 144A and Regulation S with registration rights deal.
The co-managers were Barclays Capital Inc., BNP Paribas Securities Corp., Goldman Sachs & Co., RBS Greenwich Capital, SG Corporate & Investment Banking; UBS Investment Bank and Wedbush Morgan.
Proceeds will be used for general corporate purposes, including but not limited to debt refinancing.
The issuer is an Arlington, Va., power company.
| Issuer: | AES Corp.
|
| Face amount: | $535 million, upsized from $350 million
|
| Proceeds: | $502.777 million (approximately)
|
| Maturity: | April 15, 2016
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc., Credit Suisse
|
| Co-managers: | Barclays Capital Inc., BNP Paribas Securities Corp., Goldman Sachs & Co., RBS Greenwich Capital, SG Corporate & Investment Banking; UBS Investment Bank, Wedbush Morgan
|
| Coupon: | 9¾%
|
| Price: | 93.977
|
| Yield: | 11%
|
| Spread: | 870 bps
|
| Call protection: | Non-callable with make-whole provision at Treasuries plus 50 bps
|
| Trade date: | March 30
|
| Settlement date: | April 2
|
| Ratings: | Moody's: B1
|
| Standard & Poor's BB-
|
| Fitch: BB
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 11% area
|
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