AES Announces Private Offering of Senior Notes

Rhea-AI Summary

The AES Corporation (NYSE: AES) has announced plans for a private offering of Senior Notes due 2026 and 2031, subject to market conditions. The proceeds will be allocated to eligible green projects while also funding the tender offers for its existing senior notes. This includes redeeming $65 million of 4.500% notes due 2023 and $63 million of 5.500% notes due 2024. The New Notes will only be offered to qualified institutional buyers and have not been registered under the Securities Act.

Positive

• Proceeds from the offering will fund eligible green projects.
• Intended use of proceeds includes reducing debt by redeeming existing senior notes.

Negative

• Potential dilution of existing shareholders due to the offering.
• Uncertainty surrounding market conditions may affect the offering's success.

ARLINGTON, Va., Nov. 19, 2020 /PRNewswire/ -- The AES Corporation (NYSE: AES) ("AES" or the "Company") today announced that it intends, subject to market and other conditions, to offer Senior Notes due 2026 (the "2026 Notes") and Senior Notes due 2031 (the "2031 Notes" and together with the 2026 Notes, the "New Notes") in a private offering exempt from registration in accordance with Rule 144A and Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act").

AES intends to allocate an amount equal to the net proceeds from this offering to one or more eligible green projects. Pending such allocation, AES intends to use the net proceeds from this offering to fund purchases of any and all of its 5.500% senior notes due 2025 (the "5.500% 2025 Notes"), 6.000% senior notes due 2026 (the "2026 Notes") and 5.125% senior notes due 2027 (the "2027 Notes" and, together with the 5.500% 2025 Notes and the 2026 Notes, the "Tender Offer Notes") in tender offers (the "Tender Offers"), to fully redeem any of the Tender Offer Notes not tendered in connection with the Tender Offers, to fully redeem the $65.0 million aggregate principal amount outstanding of its 4.500% notes due 2023 (the "2023 Notes") and $63.0 million aggregate principal amount of its 5.500% notes due 2024 (the "2024 Notes" and together with the Tender Offer Notes and the 2023 Notes, the "Outstanding Notes"), to pay certain related fees and expenses and for general corporate purposes. This press release does not constitute an offer to purchase or the solicitation of an offer to sell the Outstanding Notes.

The New Notes have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. The Company plans to offer and issue the New Notes only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act.

This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to buy the New Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the New Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

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.  For more information, visit www.aes.com.  

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, our financing plans, including the offering of the New Notes and the details thereof, the proposed use of proceeds therefrom, the ultimate allocation of amounts relating to the offering of the New Notes to eligible green projects, and other expected effects of the offering of the New Notes. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions.

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 are in 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' 2019 Annual Report on Form 10-K and in 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.

View original content to download multimedia:http://www.prnewswire.com/news-releases/aes-announces-private-offering-of-senior-notes-301177213.html

SOURCE The AES Corporation

FAQ

What are the details of AES's private offering of Senior Notes?

AES is offering Senior Notes due 2026 and 2031 in a private offering exempt from registration, aimed at funding green projects and refinancing existing debt.

How will AES use the proceeds from the Senior Notes offering?

The proceeds will be used to allocate funds to eligible green projects and to refinance existing notes, including redeeming $128 million of its senior notes.

Who can participate in the AES Senior Notes offering?

The New Notes will be offered only to qualified institutional buyers under Rule 144A and to persons outside the U.S. under Regulation S.

What risks are associated with AES's Senior Notes offering?

There is potential dilution for existing shareholders, and market conditions may impact the success of the offering.

When is AES planning to offer the Senior Notes?

The offering is planned subject to market and other conditions, but a specific date has not been disclosed.