AES Corp. on March 15 released early results of a previously announced cash tender offer to purchase up to $700 million of its 5.5% senior notes due 2024 and 5.5% senior notes due 2025.
As of 5 p.m. ET on March 14, noteholders tendered $670.8 million of the $737.7 million outstanding 2024 notes and $378.3 million of the $573.2 million outstanding 2025 notes. The 2024 notes have a higher acceptance priority level of 1 and the 2025 notes have a lower acceptance priority level of 2.
The company said it will not purchase securities tendered after March 14 because the aggregate amount of securities tendered on or before that date exceeds the $700 million limit. The 2025 notes will be accepted on a pro-rata basis, subject to a proration factor of approximately 8.0%.
The settlement date for securities tendered and accepted for purchase is expected to occur by March 29.
AES' commitment to accept for purchase and to pay for the securities is subject to receiving cash proceeds from the sale of its 51% equity interest in its Philippines subsidiary to SMC Global Power Holdings Corp. for $1.05 billion.
The tender offer will expire at 11:59 p.m. ET on March 28, unless extended or earlier terminated.
In addition, AES also received the requisite consents from holders of the 2024 notes to shorten the minimum notice requirements for optional redemption of the 2024 notes to three business days from 30 days.
Morgan Stanley & Co. LLC is serving as dealer manager and solicitation agent, while Global Bondholder Services Corp. is acting as the information and depositary agent.
