AES Corp. launched a cash tender offer to purchase up to $700 million of its 5.50% senior notes due March 15, 2024, and 5.50% senior notes due April 15, 2025.
In connection with the tender offers, the company also initiated a solicitation of consents to shorten the minimum notice requirements for optional redemption of the 2024 notes to three business days from 30 days.
The consent solicitation and the tender offer will expire at 11:59 p.m. ET on March 28, unless extended by the company, according to a March 1 release.
Holders who validly tender and do not subsequently validly withdraw their notes at or prior to 5 p.m. ET on March 14 will receive a total consideration of $1,055.00 per $1,000 principal amount of the 2024 notes, and total consideration of $1,052.50 per $1,000 principal amount of the 2025 notes. The total consideration includes an early tender premium of $30.
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. Under the deal, AES will sell its stake in Masin-AES Pte. Ltd., which owns the 630-MW Masinloc coal-fired facility, the under-construction 335-MW Masinloc 2 coal plant and the 10-MW Masinloc energy storage project.
The tendered notes may be withdrawn from the offer at or prior to 5 p.m. ET on March 14, unless extended.
Morgan Stanley & Co. LLC is serving as dealer manager, while Global Bondholder Services Corp. is acting as the information and depositary agent.
Also on March 1, AES announced plans to launch a $1.0 billion senior debt offering consisting of $500 million of senior notes due 2021 and $500 million of senior notes due 2023.
The company will use the net proceeds to fund a concurrent tender offer to purchase its outstanding $228 million aggregate principal amount of 8.00% senior notes due June 1, 2020, and $690 million aggregate principal amount of 7.375% senior notes due July 1, 2021 and to pay related fees and expenses, according to a separate news release.
AES plans to use any remaining net proceeds from this offering after completion of the tender offer to retire certain outstanding debt.
