#United States #Senior Notes #Arlington #AES Corporation #Cash Tender Offer

AES Corporation Concludes Successful Cash Tender Offer for 3.300% Senior Notes due 2025

The AES Corporation, a leading global energy company listed on the NYSE under the ticker symbol AES, has made a significant move in the financial market by successfully concluding a cash tender offer for its outstanding 3.300% Senior Notes, which are set to mature in 2025. This strategic decision is not only a testament to AES's commitment to effective financial management but also highlights its ongoing efforts to optimize its capital structure.

Overview of the Tender Offer

On March 18, 2025, at 5:00 PM New York City time, the tender offer officially concluded. According to the company's announcement, a remarkable 86.25% of the approximately $900 million principal amount outstanding of the Senior Notes, totaling around $776 million, was validly tendered by investors. This successful uptake indicates strong investor confidence in AES’s financial strategy.

The tender offer, which was originally proposed alongside specific terms and conditions, allowed holders of the Senior Notes to sell their securities back to the company at a price of $995.97 per $1,000 principal amount, along with accrued interest. This price reflects an attractive offer for investors looking to liquidate their holdings.

Payment and Settlement Details

Investment stakeholders who participated by tendering their notes by the expiration time will be compensated on the forthcoming settlement date, March 21, 2025. This prompt payment underscores AES's commitment to maintaining transparency and reliability in its financial dealings.

In addition to the attractive offer for the Senior Notes, the company has also communicated that the closing of this tender offer was contingent on specific conditions outlined in the Offer to Purchase. An important aspect of this was the Financing Condition, which is expected to be satisfied shortly after through the closing of AES’s previously announced $800 million offering of 5.800% Senior Notes due 2032.

Looking Ahead: Strategic Financial Management

This tender offer is part of a broader strategy that AES employs to enhance its financial flexibility and reduce borrowing costs. The company’s management is focused on maintaining operational excellence while also engaging with stakeholders to drive forward the green energy transition. Engagement with investors through transparent financial practices, such as this tender offer, reflects AES's commitment to sustainable financial growth.

The company has appointed Citigroup Global Markets Inc. as the Dealer Manager for the tender offer, with Global Bondholder Services Corporation acting as both Information Agent and Tender Agent. Such professional partnerships are vital to executing complex financial strategies efficiently.

About AES Corporation

Founded as a Fortune 500 energy company, AES is renowned for delivering innovative, cleaner energy solutions globally. With a workforce dedicated to transformation and improvement, the company positions itself at the forefront of the green energy landscape. AES continues to explore new means of energy production and distribution while maintaining its core mission of enhancing lives through smart energy solutions.

By successfully concluding this cash tender offer, AES not only consolidates its financial position but also exemplifies a proactive approach to managing its debt and enhancing stakeholder value. The future looks promising as AES embarks on its next phase of growth and innovation within the energy sector.

In conclusion, AES's recent actions highlight its commitment to leveraging financial maneuvers strategically, paving the way for sustainable growth and reinforcing investor trust in the company’s vision for a cleaner energy future.