AES Corporation Announces Pricing Terms for Tender Offer of 3.300% Senior Notes
Arlington, Virginia – The AES Corporation (AES), a renowned power generation and utility company, announced on March 18, 2025, the pricing terms of its previously announced tender offer (the “Tender Offer”) to purchase any and all of its outstanding 3.300% Senior Notes due 2025 (the “Securities”).
Terms of the Tender Offer
The Tender Offer will expire at 11:59 p.m., New York City time, on April 1, 2025, unless extended (the “Expiration Date”). AES is offering to purchase for cash, subject to certain terms and conditions, the Securities tendered to it. The purchase price for each $1,000 principal amount of Securities validly tendered and not withdrawn prior to the Early Tender Deadline (as defined below) will be $1,015.00 in cash.
Additionally, holders of Securities who validly tender their Securities after the Early Tender Deadline but on or prior to the Expiration Date will be entitled to receive a purchase price of $1,000.00 in cash, plus accrued and unpaid interest up to, but not including, the Settlement Date.
Early Tender Deadline and Withdrawal Rights
The “Early Tender Deadline” is 5:00 p.m., New York City time, on March 25, 2025. Securities tendered prior to the Early Tender Deadline may be withdrawn at any time prior to the Expiration Date, unless such Securities were tendered in connection with the guaranteed delivery procedure described below.
Guaranteed Delivery Procedure
AES has implemented a guaranteed delivery procedure for the Tender Offer. This procedure allows holders of Securities who wish to tender their Securities but who do not have their Securities held in “street name” (i.e., through a bank, broker, or other nominee) to participate in the Tender Offer by delivering their Securities through D.F. King & Co., Inc., the Information and Tender Agent for the Tender Offer. Eligible holders of Securities who wish to use this procedure must comply with the instructions set forth in the Offer to Purchase and the related Letter of Transmittal, which can be obtained from D.F. King & Co., Inc.
Impact on AES and the Bond Market
The Tender Offer represents a strategic move by AES to refinance its outstanding debt at a lower interest rate. By purchasing its 3.300% Senior Notes due 2025, AES will reduce its future interest expenses, thereby improving its financial position and enhancing its ability to invest in new projects and initiatives.
This transaction is expected to have a minimal impact on the broader bond market, as AES’s outstanding debt represents a relatively small portion of the overall market. However, it may serve as a catalyst for other companies to consider similar refinancing opportunities, particularly in a market environment where interest rates have been trending downward.
Impact on Individual Investors
For individual investors holding AES’s 3.300% Senior Notes due 2025, the Tender Offer presents an opportunity to realize gains by selling their securities back to AES at a premium. However, investors should carefully consider their investment objectives and financial situation before deciding whether to tender their securities. It is recommended that investors consult with their financial advisors before making any investment decisions.
Conclusion
The AES Corporation’s announcement of the pricing terms for its tender offer to purchase its outstanding 3.300% Senior Notes due 2025 marks a strategic move to refinance its debt at a lower interest rate. The transaction is expected to have minimal impact on the broader bond market but may serve as a catalyst for other companies to consider similar opportunities. Individual investors holding AES’s 3.300% Senior Notes due 2025 may choose to tender their securities to realize gains at a premium. Investors are encouraged to consult with their financial advisors before making any investment decisions.
- AES Corporation announces pricing terms for tender offer of 3.300% Senior Notes due 2025
- Company offers to purchase Securities for cash at a premium
- Strategic move to refinance debt at lower interest rate
- Minimal impact on broader bond market
- Opportunity for individual investors to realize gains
