AES Increases Revolving Credit Facility to $450 Million; Amendments Add Financial Flexibility to Support Financial Strategy.Business Editors ARLINGTON, Va.--(BUSINESS WIRE)--March 18, 2004 The AES Corporation (NYSE NYSE See: New York Stock Exchange : AES) today announced it has increased the size of its secured 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 from $250 million to $450 million through an expanded group of global financial institutions. The Company also said it has negotiated amendments to its secured bank credit agreement, which includes the revolving credit facility and a $200 million secured term loan, to add financial flexibility to support the Company's financial strategy. For example, the amendments will allow the company to better utilize available cash to repurchase existing unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. . Consistent with the Company's improving credit statistics, there were no changes in the credit agreement's pricing, financial covenants or maturity date. The amended credit facility and term loan expire in July 2007. "This expanded credit facility is part of our financial plan to strengthen our capital structure and improve our credit quality," said Barry Sharp, Executive Vice President and Chief Financial Officer. "It also lets us reduce interest expense by using more of our available cash to pay down debt, consistent with our earnings guidance for 2004, while meeting our liquidity targets." This financing was contemplated and taken into account in the Company's February 5, 2004 earnings guidance of $0.62 per diluted share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , and therefore this press release is not intended to reaffirm or update its prior earnings guidance. "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 "Risk Factors" in the Company's 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 year ending December 31, 2003. 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 114 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 Investor relations The process by which the corporation communicates with its investors. at investing@aes.com. |
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