AES Announces Cash Tender Offer for Any and All of Its 3.300% Senior Notes due 2025
AES (NYSE: AES) has announced a cash tender offer to purchase any and all of its outstanding 3.300% Senior Notes due 2025. The tender offer will expire at 5:00 p.m., New York City time, on March 18, 2025, unless extended or terminated earlier.
Holders who validly tender their Securities will receive the Purchase Price plus accrued and unpaid interest from January 15, 2025, up to the Settlement Date, expected to be March 21, 2025. The Purchase Price will be determined by reference to a fixed spread plus the yield based on U.S. Treasury Reference Security prices.
The tender offer is subject to certain conditions, including AES obtaining debt financing in a minimum aggregate principal amount, together with cash on hand, to purchase the tendered Securities. Citigroup Global Markets Inc. has been retained as Dealer Manager for the tender offer.
AES (NYSE: AES) ha annunciato un'offerta di acquisto in contante per acquistare tutte le sue obbligazioni senior in circolazione con un tasso del 3,300% in scadenza nel 2025. L'offerta scadrà alle 17:00, ora di New York, del 18 marzo 2025, a meno che non venga prorogata o terminata prima.
Gli investitori che presenteranno validamente i loro titoli riceveranno il Prezzo di Acquisto più gli interessi maturati e non pagati dal 15 gennaio 2025 fino alla Data di Regolamento, prevista per il 21 marzo 2025. Il Prezzo di Acquisto sarà determinato facendo riferimento a uno spread fisso più il rendimento basato sui prezzi dei Titoli di Stato statunitensi.
L'offerta è soggetta a determinate condizioni, tra cui AES deve ottenere finanziamenti per il debito per un importo principale aggregato minimo, insieme alla liquidità disponibile, per acquistare i titoli offerti. Citigroup Global Markets Inc. è stata incaricata come Dealer Manager per l'offerta.
AES (NYSE: AES) ha anunciado una oferta de compra en efectivo para adquirir todos sus Bonos Senior en circulación con un interés del 3,300% que vencen en 2025. La oferta expirará a las 5:00 p.m., hora de Nueva York, el 18 de marzo de 2025, a menos que se extienda o se cancele antes.
Los tenedores que presenten válidamente sus Valores recibirán el Precio de Compra más los intereses acumulados y no pagados desde el 15 de enero de 2025 hasta la Fecha de Liquidación, que se espera sea el 21 de marzo de 2025. El Precio de Compra se determinará en función de un diferencial fijo más el rendimiento basado en los precios de los Títulos de Tesorería de EE. UU.
La oferta está sujeta a ciertas condiciones, incluida la obtención de financiamiento de deuda por parte de AES por un monto principal agregado mínimo, junto con efectivo disponible, para comprar los Valores ofrecidos. Citigroup Global Markets Inc. ha sido contratado como Gerente de la Oferta.
AES (NYSE: AES)는 2025년 만기 3.300%의 모든 발행된 선순위 채권을 구매하기 위한 현금 입찰 제안을 발표했습니다. 입찰 제안은 2025년 3월 18일 오후 5시(뉴욕 시간)까지 유효하며, 연장되거나 조기에 종료되지 않는 한 유효합니다.
유효하게 증권을 제출한 보유자는 2025년 1월 15일부터 정산일인 2025년 3월 21일까지의 미지급 이자를 포함한 구매 가격을 받게 됩니다. 구매 가격은 고정 스프레드와 미국 국채 기준 증권 가격을 기준으로 한 수익률에 따라 결정됩니다.
입찰 제안은 특정 조건에 따라 다르며, AES가 최소 총 원금 금액의 부채 자금을 확보해야 합니다 및 현금 보유액과 함께 제출된 증권을 구매하기 위해 필요합니다. Citigroup Global Markets Inc.가 입찰 제안의 딜러 매니저로 선정되었습니다.
AES (NYSE: AES) a annoncé une offre de rachat en espèces pour acquérir toutes ses Obligations Senior en circulation à 3,300% arrivant à échéance en 2025. L'offre expirera le 18 mars 2025 à 17h00, heure de New York, sauf prolongation ou résiliation anticipée.
Les détenteurs qui soumettent valablement leurs Titres recevront le Prix d'Achat plus les intérêts courus et non payés depuis le 15 janvier 2025 jusqu'à la Date de Règlement, prévue pour le 21 mars 2025. Le Prix d'Achat sera déterminé par référence à un écart fixe plus le rendement basé sur les prix des titres du Trésor américain.
L'offre est soumise à certaines conditions, y compris AES doit obtenir un financement par emprunt d'un montant principal agrégé minimum, ainsi que des liquidités disponibles, pour acheter les Titres proposés. Citigroup Global Markets Inc. a été retenue comme Gestionnaire de l'Offre.
AES (NYSE: AES) hat ein Barangebot angekündigt, um alle ausstehenden 3,300% Senior Notes mit Fälligkeit 2025 zu erwerben. Das Angebot läuft am 18. März 2025 um 17:00 Uhr New Yorker Zeit ab, es sei denn, es wird verlängert oder früher beendet.
Inhaber, die ihre Wertpapiere gültig anbieten, erhalten den Kaufpreis zuzüglich aufgelaufener und nicht gezahlter Zinsen vom 15. Januar 2025 bis zum Abrechnungstag, der voraussichtlich der 21. März 2025 sein wird. Der Kaufpreis wird anhand einer festen Spanne und der Rendite basierend auf den Preisen der US-Staatsanleihen bestimmt.
Das Angebot unterliegt bestimmten Bedingungen, einschließlich AES muss eine Mindestgesamtbetrag an Fremdfinanzierung zusammen mit verfügbaren Barmitteln erhalten, um die angebotenen Wertpapiere zu kaufen. Citigroup Global Markets Inc. wurde als Dealer Manager für das Angebot beauftragt.
- Company showing proactive debt management through early tender offer
- Potential reduction in interest expense if refinanced at lower rates
- New debt financing required to complete the tender offer
- Additional interest expenses due to accrued interest payments
Insights
AES has launched a cash tender offer to purchase all of its outstanding 3.300% Senior Notes due 2025, signaling a proactive approach to debt management as these notes approach maturity. The tender offer will expire on March 18, 2025, giving bondholders a window to participate.
Importantly, this tender offer is subject to a Financing Condition - AES must secure new debt financing sufficient to fund the repurchase. This suggests the company is likely planning to refinance rather than retire this debt outright, which is a standard liability management practice for maintaining optimal capital structure.
The purchase price for the notes will be determined based on a formula referencing U.S. Treasury yields plus a fixed spread, and holders will also receive accrued interest from January 15 to the settlement date (expected March 21). This pricing mechanism ensures bondholders receive fair market value considering current interest rate conditions.
This move demonstrates AES's proactive approach to addressing its near-term debt obligations before maturity later this year. By refinancing debt that would otherwise mature in 2025, the company can potentially extend its debt maturity profile and possibly secure more favorable terms depending on current market conditions.
While this transaction itself is routine corporate finance activity, investors should note that the timing and execution of debt refinancing can impact the company's interest expense and leverage profile going forward. The success of this tender offer and the terms of any replacement financing will determine the actual financial impact on AES.
This tender offer represents standard debt management practice for AES as it addresses notes maturing in 2025. The company is executing what appears to be a debt refinancing strategy, though specific terms of any replacement debt are not disclosed in the announcement.
The mechanics of the offer are noteworthy: the purchase price will be determined using a formula based on Treasury yields plus a fixed spread, ensuring market-aligned pricing. Bondholders will receive both this purchase price and any accrued interest, providing fair compensation for early redemption.
The Financing Condition is particularly significant - it explicitly states that AES's obligation to complete the tender is contingent upon securing new debt financing together with available cash. This confirms the refinancing nature of this transaction rather than a net debt reduction strategy.
From a treasury management perspective, this move makes sense given current interest rate trends. With the 3.300% notes approaching maturity, AES is likely seeking to lock in its capital structure for the coming years and potentially optimize its interest expense, particularly if they can secure favorable terms on replacement debt.
The tender doesn't appear to signal any liquidity concerns, as this type of liability management is routine corporate finance practice. Instead, it demonstrates prudent maturity management by addressing obligations well before they come due, which reduces refinancing risk. The impact on AES's overall financial position will ultimately depend on the terms of any replacement financing secured to fund this tender offer.
AES has launched a cash tender offer for all of its 3.300% Senior Notes due 2025, representing proactive debt management as these notes approach maturity later this year. The company is offering to purchase the notes at a price determined by reference to Treasury yields plus a fixed spread, with holders also receiving accrued interest. Importantly, this offer is contingent upon AES securing new debt financing sufficient to fund the purchase, indicating this is a refinancing rather than debt reduction strategy. The tender offer expires on March 18, 2025, with settlement expected around March 21. This is a standard liability management exercise that companies undertake to manage their debt maturity profile and potentially secure more favorable financing terms. By addressing these near-term maturities proactively, AES is reducing refinancing risk and demonstrating prudent financial management. The pricing mechanism ensures bondholders receive fair market value considering current interest rate conditions, while the company potentially gains more flexibility in its debt structure. While routine in nature, the success of this tender and the terms of any replacement financing will determine the ultimate financial impact on AES's interest expense and overall capital structure.
The Tender Offer is being made pursuant to the Company's Offer to Purchase, dated March 12, 2025 (the "Offer to Purchase") and the related notice of guaranteed delivery (the "Notice of Guaranteed Delivery" and, together with the Offer to Purchase, the "Offer Documents"), which set forth a more detailed description of the terms of the Tender Offer. Holders of the Securities (individually, a "Holder," and collectively, the "Holders") are urged to carefully read the Offer Documents before making any decision with respect to the Tender Offer.
The following table sets forth certain terms of the Tender Offer:
Title of Security | CUSIP Number | Principal Amount | UST | Bloomberg | Fixed Spread | |||||
144A: 00130H CB9 Reg S: U0080R AQ3 |
| FIT3 | +25 |
The consideration (the "Purchase Price") offered per
In addition to the Purchase Price, all Holders of Securities accepted for purchase will also receive accrued and unpaid interest ("Accrued Interest") from the January 15, 2025 interest payment date up to, but not including, the date on which AES makes payment for such Securities, which date is currently expected to be March 21, 2025 (such date, as it may be extended, the "Settlement Date").
The Tender Offer will expire at 5:00 p.m.,
Subject to the terms and conditions of the Tender Offer, each Holder who (i) validly tenders its Securities at or prior to the Expiration Time and does not subsequently validly withdraw such Securities at or prior to the Withdrawal Deadline or (ii) delivers a properly completed and duly executed Notice of Guaranteed Delivery with respect to its Securities at or prior to the Expiration Time with such Securities validly tendered at or prior to the second business day after the Expiration Time, will be entitled to receive the Purchase Price, plus Accrued Interest, on the Settlement Date, if such Securities are accepted for purchase.
AES' obligation to accept for purchase, and to pay for, Securities validly tendered pursuant to the Tender Offer is subject to, and conditioned upon, certain conditions, including the condition that AES shall have obtained debt financing in a minimum aggregate principal amount, together with cash on hand, to purchase the tendered Securities, including payment of the Purchase Price, Accrued Interest and any fees payable in connection with the Tender Offer, subsequent to the date hereof and on or prior to the Settlement Date, on terms and conditions reasonably satisfactory to AES (the "Financing Condition"). The Tender Offer is not conditioned on any minimum amount of Securities being tendered. AES may amend, extend or terminate the Tender Offer in its sole discretion. The obligation of AES to accept for purchase and to pay the Purchase Price and Accrued Interest on the Securities is not subject to any minimum tender condition, but is subject to the satisfaction or waiver of the Financing Condition and certain other conditions described in the Offer to Purchase.
AES has retained Citigroup Global Markets Inc. to serve as Dealer Manager for the Tender Offer. Global Bondholder Services Corporation has been retained to serve as the Information Agent and Tender Agent for the Tender Offer. Questions regarding the Tender Offer may be directed to Citigroup Global Markets Inc. at 388 Greenwich Street,
AES is making the Tender Offer only by, and pursuant to, the terms of the Offer Documents. None of AES, the Dealer Manager, the Information Agent and Tender Agent makes any recommendation as to whether Holders should tender or refrain from tendering their Securities. Holders must make their own decision as to whether to tender Securities and, if so, the principal amount of the Securities to tender.
The Tender Offer is not being made to Holders of Securities in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Tender Offer to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made on behalf of AES by the Dealer Manager, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This press release does not constitute an offer to purchase securities or a solicitation of an offer to sell any securities or an offer to sell or the solicitation of an offer to purchase any new securities, nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is unlawful. Capitalized terms used in this press release but not otherwise defined herein have the meanings assigned to them in the Offer Documents.
About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Such forward-looking statements include, but are not limited to, the Tender Offer, the details thereof, other expected effects of the Tender Offer and the proposed concurrent debt financing to satisfy the Financing Condition and the use of proceeds therefrom.
Actual results could differ materially from those projected in AES' forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results include the aggregate amount of Securities tendered (which could lead to retirement or repayment of other existing debt), the successful pricing and closing of the proposed concurrent debt financing to satisfy the Financing Condition, and risks and uncertainties discussed in the Offer to Purchase related to the Tender Offer and AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2024 Annual Report on Form 10-K and in any subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law.
Any stockholder who desires a copy of the Company's 2024 Annual Report on Form 10-K filed March 11, 2025 with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard,
Investor Contact: Susan Harcourt, 703-682-1204, susan.harcourt@aes.com
Media Contact: Amy Ackerman, 703-682-6399, amy.ackerman@aes.com
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SOURCE The AES Corporation
FAQ
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