AES driving by with $1 billion senior notes in two tranches

By Paul A. Harris

Portland, Ore., March 1 – AES Corp. plans to price $1 billion of senior notes (current ratings Ba2/BB) in two tranches in a Thursday drive-by following a mid-morning conference call with investors, according to market sources.

The public offering features a $500 million three-year bullet with initial guidance in the 4% area and a $500 million tranche of five-year notes, which come with two years of call protection and initial guidance in the 4½% area.

Morgan Stanley & Co. LLC, Barclays, BofA Merrill Lynch, Citigroup Global Market Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and MUFG are the joint bookrunners.

BNP Paribas Securities Corp., Credit Agricole CIB, HSBC Securities, KeyBanc Capital Markets LLC, Mizuho Securities, Ramirez, SG CIB and SMBC Nikko are the co-managers.

The Arlington, Va.-based power company plans to use the proceeds to fund tender offers for its 8% senior notes due 2020 and 7 3/8% senior notes due 2021.

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