New Issue: AES prices upsized $750 million 10-year notes at par to yield 5½%

By Paul A. Harris

Portland, Ore., March 4 - AES Corp. priced an upsized $750 million issue of 10-year senior notes (Ba3/BB-/) at par to yield 5½% on Tuesday, according to a market source.

The deal was upsized from $500 million.

The yield printed at the tight end of the 5½% to 5 5/8% yield talk.

Goldman Sachs & Co., Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC were the joint bookrunners.

The Arlington, Va.-based power producer plans to use the proceeds to fund tender offers, including its 8% senior notes due 2017, its 7¾% senior notes due 2015 and its 9¾% senior notes due 2016.

Issuer:	AES Corp.
Amount:	$750 million, increased from $500 million
Maturity:	March 15, 2024
Securities:	Senior notes
Bookrunners:	Goldman Sachs & Co., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC
Co-managers:	BNP Paribas, Credit Agricole CIB, HSBC, Mitsubishi UFJ Securities, RBS Securities Inc., SG CIB
Coupon:	5½%
Price:	Par
Yield:	5½%
Spread:	282 bps
First call:	March 15, 2019 at 102.75
Trade date:	March 4
Settlement date:	March 7
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	SEC registered
Price talk:	5½% to 5 5/8%
Marketing:	Quick to market

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