S&P rates AES Gener hybrid notes BB

Standard & Poor's said it assigned its BB rating to AES Gener SA's (BBB-/stable/--) proposed subordinated hybrid notes for up to $450 million.

The proceeds of the issuance will be used to refinance debt maturities and finance the development of new projects.

The differential between the BBB- counterparty credit rating and the BB rating on the hybrid securities reflects the subordinated nature of the notes and the embedded interest deferral feature. The interest deferral feature is at the sole discretion of the company's management. Unpaid interest is capitalized.

The hybrid notes will have a tenor of 60 years. The hybrid notes are junior subordinated debt. The notes will have seven- or 10-year call option from the date of issue. The notes will also have an interest rate step-up feature of 25 basis points in year 10 or 12 and of 75 bps in year 27 or 30 (depending on the call date).

S&P said it views the notes as having intermediate equity content for the rating.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.