AES Announces Pricing of $800 Million of Senior Notes in Public Offering
Rhea-AI Summary
AES (NYSE: AES) has announced the pricing of $800 million aggregate principal amount of 5.800% senior notes due 2032. The offering is expected to close on March 20, 2025, subject to customary conditions.
The company plans to use the net proceeds to fund purchases of its 3.300% Senior Notes due 2025 through a tender offer. Any remaining proceeds will be allocated to retire outstanding indebtedness and for general corporate purposes.
The offering is being managed by joint book-runners including Citigroup Global Markets, BNP Paribas Securities, BofA Securities, MUFG Securities Americas, and Santander US Capital Markets.
Positive
- Refinancing of existing debt with new 7-year notes indicates strong market access
- Multiple major financial institutions supporting the offering demonstrates market confidence
Negative
- New notes carry higher interest rate (5.800%) compared to existing notes (3.300%), increasing interest expenses
- Additional $800 million in debt could impact company's leverage ratios
News Market Reaction – AES
On the day this news was published, AES gained 3.80%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AES intends to use the net proceeds from the proposed offering to fund purchases of its
Citigroup Global Markets Inc., BNP Paribas Securities Corp., BofA Securities, Inc., MUFG Securities Americas Inc. and Santander US Capital Markets LLC are acting as joint book-running managers of the proposed offering.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor does it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. An effective shelf registration statement related to the Notes has previously been filed by AES with the Securities and Exchange Commission (the "SEC"). The offering and sale of the Notes are being made only by means of a prospectus supplement dated March 12, 2025 and an accompanying base prospectus dated March 11, 2025 related to the offering. Before you invest, you should read the prospectus and the preliminary prospectus supplement in that registration statement and other documents AES has filed with the SEC for more complete information about AES and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the prospectus supplement and related base prospectus related to this offering may be obtained from Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Such forward-looking statements include, but are not limited to, our financing plans, including the offering of the Notes and the details thereof, the proposed use of proceeds therefrom, the Tender Offer and other expected effects of the offering of the Notes and anticipated use of our shelf registration statement, which are subject to risks and uncertainties, such as our continued eligibility to use the shelf registration statement, general economic conditions and other risks and uncertainties.
Actual results could differ materially from those projected in AES' forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in the prospectus supplement related to the offering and AES' filings with the SEC, including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2024 Annual Report on Form 10-K and in any subsequent reports filed with the SEC. Potential investors are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law.
Investor Contact: Susan Harcourt, 703-682-1204, susan.harcourt@aes.com
Media Contact: Amy Ackerman, 703-682-6399, amy.ackerman@aes.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/aes-announces-pricing-of-800-million-of-senior-notes-in-public-offering-302400414.html
SOURCE The AES Corporation
FAQ
What is the interest rate and maturity of AES's new senior notes offering?
How much is AES raising in their March 2025 senior notes offering?
What will AES use the proceeds from the 2025 senior notes offering for?
When is the closing date for AES's $800 million senior notes offering?
Which investment banks are managing AES's 2025 senior notes offering?
