AES Amends $650 Million Credit Facilities; Reduces Interest Rate on Term Loan and Revolving Credit Facility; Extends Maturity Date of Revolving Credit Facility.ARLINGTON, Va. -- The AES Corporation (NYSE NYSE See: New York Stock Exchange :AES) today announced it has amended its $650 million credit facilities to significantly reduce borrowing costs. The interest rate on the $450 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility has been reduced to the London Interbank Offered Rate London Interbank Offered Rate A short-term interest rate often quoted as a 1,3,6-month rate for U.S.dollars. (LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). ) plus 175 basis points. Previously, the rate was LIBOR plus 250 basis points. In addition, the revolving credit facility maturity date was extended from 2007 to 2010. The interest rate on the term loan facility also was reduced to LIBOR plus 175, from LIBOR plus 225, while its maturity in 2011 remains unchanged. At May 31, 2005, there were no borrowings under the $450 million revolving credit facility, but approximately $179 million was utilized for letters of credit supporting general business purposes, while the $200 million term loan was fully drawn. AES retains the right to prepay without penalty under these facilities at any time. "This amendment demonstrates that the financial markets continue to recognize AES's improving credit quality. It reflects the benefits of our deleveraging strategy and our improved financial performance," said AES Executive Vice President and Chief Financial Officer, Barry Sharp. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 Statements in this press release regarding AES Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Cautionary Statements and Risk Factors" in the Company's 2004 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . About AES AES is a leading global power company, with 2004 revenues of $9.5 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 124 power facilities and delivers electricity through 15 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact media relations at media@aes.com. |
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