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AES sells $1B of senior notes to fund tender offer

AES Corp. sold $500 million of its 4% senior unsecured notes due March 15, 2021, and $500 million of its 4.50% senior unsecured notes due March 15, 2023, according to company filings.

The company plans to use net proceeds to fund a concurrent tender offer to purchase its outstanding $228 million of its 8% senior notes due June 1, 2020, and $690 million of its 7.375% senior notes due July 1, 2021. It plans to use any remaining net proceeds to retire certain of its outstanding indebtedness and for general corporate purposes.

Interest on the notes is payable semiannually on March 15 and Sept. 15 of each year, starting Sept. 15. The 4% notes have a spread to benchmark Treasury of 164 basis points and the 4.5% notes have a spread to benchmark Treasury of 193 basis points.

Morgan Stanley & Co. LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc. and MUFG Securities Americas Inc. acted as joint book-running managers.

BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Samuel A. Ramirez & Co., SG Americas Securities LLC and SMBC Nikko Securities America Inc. served as co-managers.