AES Announces Closing of $1.8 Billion Private Placement and Closing of Tender Offer for Its Senior Subordinated Notes.Business Editors ARLINGTON, Va.--(BUSINESS WIRE)--May 9, 2003 The AES Corporation AES Corporation AES (NYSE) is a Fortune 1000 company that generates and distributes electrical power. It was founded on January 28, 1981 by Roger Sant from the US Federal Energy Administration and Dennis Bakke from the Office of Management and Budget. (NYSE NYSE See: New York Stock Exchange :AES) announced that it completed its private offering of $1.8 billion of second priority senior secured notes. The notes were issued in two tranches: $1.2 billion of 8.75% Second Priority Senior Secured Notes due 2013 and $600 million of 9.00% Second Priority Senior Secured Notes due 2015. AES also announced that the tender offer for its senior subordinated notes had expired and that it had purchased approximately $104 million face amount of senior subordinated notes pursuant to the tender offer. The proceeds from the private offering were used to purchase the senior subordinated notes in the tender offer and to repay $475 million under AES's senior secured credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , and will also be used to purchase approximately $1.1 billion face amount of senior notes in the tender offer and for general corporate purposes. The transactions substantially eliminate all scheduled parent maturities at AES until 2005, improve financial flexibility and parent liquidity, and lengthen the average life of AES's parent debt maturities. Barry Sharp, Chief Financial Officer, stated, "The completion of these transactions is another major step in AES's plan to strengthen the balance sheet, improve financial flexibility and increase liquidity. We sincerely appreciate the support and the confidence expressed by our lenders and investors." AES is a leading global power company comprised of contract generation, competitive supply, large utilities and growth distribution businesses. The company's generating assets include interests in 158 facilities totaling over 55 gigawatts of capacity, in 28 countries. AES's electricity distribution network sells 108,000 gigawatt gig·a·watt n. Abbr. GW One billion (109) watts. hours per year to over 16 million end-use customers. "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: This news release may contain "forward-looking statements" regarding The AES Corporation's business. These statements are not historical facts, but statements that involve risks and uncertainties. Actual results could differ materially from those projected in these forward-looking statements. For a discussion of such risks and uncertainties, see "Risk Factors" in the Company's Annual Report or 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. for the most recently ended fiscal year. |
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