Chile’s AES Gener launches $550 million 60-year junior subordinated notes to yield 7 1/8%

By Paul A. Harris

Portland, Ore., March 18 – AES Gener SA launched a $550 million offering of junior subordinated notes due 2079 (expected ratings: Ba2/BB/BB) to yield 7 1/8%, according to a market source.

The deal launched tight to guidance in the 7 3/8% area. Initial price talk was in the mid-to-high 7% area.

The deal was expected to price later on Monday, the source said.

Joint bookrunner Goldman Sachs & Co. will bill and deliver. BofA Merrill Lynch and J.P. Morgan Securities LLC are also joint bookrunners.

The Santiago-based electricity generator plans to use the proceeds to refinance its 8 3/8% hybrid notes due 2073 and for general corporate purposes.

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