AES gets $600 million credit facility

By Sara Rosenberg

New York, April 4 - The AES Corp. closed on a new $600 million four-year credit facility, according to a company news release.

Merrill Lynch acted as the lead bank on the deal.

Proceeds from the facility, which closed on March 31, will be used for general corporate purposes and to provide letters of credit to support the company's investment commitment as well as the underlying funding for the equity portion of its investment in its Maritza coal-fired generation plant in Bulgaria.

"This new credit facility will help support our growth objectives and add to our financial flexibility," said Victoria Harker, executive vice president and chief financial officer, in the release.

"At the same time, we remain committed to further improving our credit quality as evidenced by last week's credit upgrade from Standard & Poor's."

In addition, AES is seeking a waiver and amendment under its existing revolving credit facility regarding the default as of March 31 due to the restatement of 2003 financial statements.

As a result of the default, $200 million of the debt under the revolver has been classified as current on the balance sheet as of Dec. 31.

Upon receipt of the waiver and amendment, the company will be able to borrow additional funds under the revolving credit facility, if needed.

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

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