AES Corporation Announces Pricing of $900 Million Senior Notes Due 2028

The AES Corporation (NYSE: AES) announced today the pricing of $900 million aggregate principal amount of its 5.450% senior notes due 2028. The closing of the offering of the Notes is expected to occur, subject to certain customary closing conditions, on May 17, 2023 (T+2). J.P. Morgan Securities LLC and Barclays Capital Inc., MUFG Securities Americas Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. are acting as joint book-running managers of the proposed offering.

 

Allocating Net Proceeds to Eligible Green Projects

 

AES intends to allocate an amount equal to the net proceeds from this offering to one or more eligible green projects, which may include the development or redevelopment of such projects. Pending such allocation, AES intends to use the net proceeds from the proposed offering to refinance existing indebtedness, fund investments in the Company’s renewables strategic business unit, fund investments in its U.S. utilities businesses, or for general corporate purposes.

 

AES’s commitment to Sustainability

 

AES Corporation is a Fortune 500 global power company that provides affordable, sustainable energy to 14 countries through a diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. AES’s commitment to sustainability is reflected in its corporate goals, which include reducing its greenhouse gas emissions, increasing its renewable energy capacity, and promoting energy efficiency.

 

Investments in Renewable Energy

 

The net proceeds from the proposed offering will be used to fund investments in AES’s renewable strategic business unit. The Company’s renewables portfolio includes solar, wind, and energy storage projects in the United States and several other countries.

 

Refinancing Existing Indebtedness

 

AES also plans to use the net proceeds from the proposed offering to refinance existing indebtedness. The refinancing will enable AES to lower its borrowing costs and improve its financial flexibility.

 

Investments in U.S. Utilities Businesses

 

AES will also use the net proceeds from the proposed offering to fund investments in its U.S. utilities businesses. The Company owns and operates utilities in 13 states and the District of Columbia, serving approximately 2.4 million customers.

 

Joint Book-Running Managers of the Proposed Offering

 

J.P. Morgan Securities LLC and Barclays Capital Inc., MUFG Securities Americas Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. are acting as joint book-running managers of the proposed offering. J.P. Morgan Securities LLC and Barclays Capital Inc. will act as the representatives of the underwriters.

 

Conclusion

 

AES Corporation’s pricing of $900 million senior notes due 2028 marks a significant milestone for the Company. The net proceeds from the proposed offering will be used to fund investments in its renewable strategic business unit, refinance existing indebtedness, fund investments in its U.S. utilities businesses, or for general corporate purposes. AES’s commitment to sustainability is reflected in its corporate goals, which include reducing its greenhouse gas emissions, increasing its renewable energy capacity, and promoting energy efficiency. The joint book-running managers of the proposed offering are J.P. Morgan Securities LLC and Barclays Capital Inc., MUFG Securities Americas Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.

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Elliott holds a Bachelor of Science Degree from Lehigh University, where he majored in Finance and Accounting, with a minor in History. His mainly focused on Investments and Financial Analysis.

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