AES Completes Remaining Brazil Debt Restructuring; AES Sul Holding Company Loan Restructured.ARLINGTON, Va. -- The AES Corporation (NYSE NYSE See: New York Stock Exchange :AES) today announced the final debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: of its Brazil portfolio, bringing its total project debt restructuring for the past six months to $2.7 billion. A holding company for AES Sul Distribuidora Gaucha de Energia S.A. ("AES Sul") reached agreement with its syndicated lenders to restructure a $316 million loan facility. AES Sul is a distribution company serving 1,000,000 customers in the state of Rio Grande do Sul Rio Grande do Sul (rē`  grän`dĭ th s in southern Brazil. The agreement with the syndicated lenders successfully resolves all outstanding defaults and extends the term of the facility to 2011 thereby restructuring future payments to match projected cash flows. The restructuring includes payment of $50 million under the AES sponsor guarantee. No further support is required and therefore the remaining $266 million of debt will remain non-recourse to AES. AES owns a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in four Brazilian electricity companies, AES Eletropaulo, a distribution company serving 5.1 million customers in Sao Paulo, Brazil; AES Tiete, a 2650 MW hydroelectric facility in Sao Paulo Brazil; AES Uruguaiana, a 639 MW generating plant in Rio Grande do Sul, and AES Sul. Earlier this year, AES completed financial restructurings of AES Eletropaulo, AES Tiete and their holding companies. "We are pleased to complete the restructuring of the holding company debt of AES Sul, the final financial restructuring in our Brazil portfolio," said Joseph C. Brandt, Executive Vice President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of AES. "We extend our thanks to AES Sul's lenders for their support and confidence. AES Sul now has the capital structure to take advantage of the vibrant economy of Rio Grande do Sul." "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 "Cautionary Statements and 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. About AES AES is a leading global power company, with 2003 sales of $8.4 billion. AES delivers 45,000 megawatts of electricity to customers in 27 countries through 113 power facilities and 17 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 AES investor relations at invest@aes.com. |
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