#USA #Senior Notes #Arlington #AES Corporation #Cash Tender Offer

AES Corporation Launches Tender Offer

On March 12, 2025, The AES Corporation, a leading global energy company trading on the NYSE under the symbol AES, announced the initiation of a cash tender offer for its 3.300% Senior Notes due 2025. This strategic financial maneuver aims to enhance the company’s liquidity and financial flexibility.

Overview of the Tender Offer

The tender offer is available to all holders of the 3.300% Senior Notes, inviting them to participate in a cash purchase of their securities. The company has set a total principal amount of $900 million for the notes, which align with their efforts to optimize their capital structure. The offer documents elaborate on the various terms and stipulations of this tender program, encouraging all interested parties to peruse these details thoroughly before making a decision.

Key Details of the Offer

The Offer to Purchase includes critical information regarding the terms of the tender offer. Notably, the Purchase Price for the notes will depend on a specific fixed spread referenced alongside the bid-side price of the U.S. Treasury Reference Security. The noted parameters detail that the fixed spread is set at +25 basis points. The determination of the Purchase Price will be made up until 2:00 PM New York City time on the offer's commencement date.

Important Dates

• - Tender Offer Expiration: The deadline for submissions is March 18, 2025, at 5:00 PM New York City time.
• - Settlement Date: Expected payments for accepted tenders is anticipated to occur on March 21, 2025. This date could be adjusted in line with the company’s operational capabilities.

Conditions for Acceptance

AES has clearly outlined that their acceptance for the purchase of the notes is contingent upon obtaining debt financing in aggregate sufficient to cover the purchase price, accrued interest, and associated costs of the tender offer. Furthermore, the tender offer is available to holders across all jurisdictions, with the stipulation that it will be executed in compliance with respective regulations.

Participation and Withdrawal Rights

Holders can withdraw their tenders any time before the withdrawal deadline, which correlates with the earlier of the expiration time or after 10 business days from the tender's initiation. This flexibility assures participants that they can opt-out as necessary, adding a measure of security to their decision-making process.

Guidance for Securities Holders

For those contemplating participation, AES highly recommends reviewing the Offer Documents carefully to understand the implications of their involvement. In addition to having access to the formal documents through their online platform, inquiries can be directed toward Citigroup Global Markets Inc., which serves as the Dealer Manager for this initiative.

Conclusion

Overall, the tender offer signifies AES Corporation's proactive approach to financial management and reflects its commitment to adapting to market conditions while managing debt efficiently. As always, AES continues to prioritize shareholder value and operational integrity in all its endeavors. Participants are encouraged to stay informed through AES's communications and available resources as they consider their options concerning this tender offer.