AES deal upsized to $1.4 to $1.8 billion in two tranches, pricing Thursday

By Paul A. Harris

St. Louis, April 30 - AES Corp. upsized its offering of second priority senior secured notes (B2/B+) to between $1.4 and $1.8 billion from $1 billion and modified the structure to two tranches from one, according to a syndicate source.

The deal is expected to price on Thursday afternoon.

Talk is for a yield in the 8¾% area on $1 to $1.2 billion of notes due 2013.

And talk is for a yield in the 9% area on $400 to $600 million of notes due 2015.

Citigroup is the bookrunner. UBS Warburg is joint lead manager. The co-managers are Credit Lyonnais, Deutsche Bank Securities Inc., Lehman Brothers, SG Cowen and BTM.

Both tranches are Rule 144A for life and will be comprised of notes that are non-callable for five years.

Proceeds will be used to fund AES' cash tender for outstanding senior and subordinated notes and to pay down $475 million of its senior bank facility.

The issuer is an Arlington, Va. energy company.

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