AES Announces Redemption of $3.375 Term Convertible Securities
May 24 2017 - 4:15PM
Business Wire
The AES Corporation (NYSE: AES, “AES” or the “Company”)
announced today that it entered into a $525 million credit
agreement (the “Credit Agreement”), dated as of May 24, 2017,
among The AES Corporation, as borrower, the banks listed therein
and Barclays Bank PLC, as administrative agent. The Credit
Agreement provides for borrowings in an aggregate principal amount
of up to $525 million (the “Facility”). The proceeds of the
Facility will be used by the Company to redeem its $3.375 Term
Convertible Securities, Series C (“TECONS”) (CUSIP No. 00808N202)
and for general corporate purposes.
The TECONS, which trade on the New York Stock Exchange under the
ticker symbol “AES-C”, have been called for redemption on June 23,
2017 (the “Redemption Date”). The Company is redeeming all of the
outstanding TECONS at a redemption price equal to the sum of 100%
of the principal amount of the TECONS to be redeemed (or $50 per
$50 TECONS) plus accrued and unpaid distributions thereon to the
Redemption Date ($0.647 per $50 TECONS) (the “Redemption Price”).
Payment of the Redemption Price, plus any accrued and unpaid
dividends payable on the redemption date, without interest, will be
made only upon presentation and surrender of the certificates
representing the TECONS to the redemption agent, Wells Fargo Bank,
N.A., 600 South Fourth Street, Minneapolis, Minnesota 55415. For
further information, holders may contact Wells Fargo Bank, N.A. by
phone, 1-800-344-5128, or email,
bondholdercommunications@wellsfargo.com.
The TECONS are convertible into AES common stock at any time
prior to the close of business on June 22, 2017 (the business day
prior to the redemption date) at a conversion rate (which has been
adjusted to give effect to the 2-for-1 stock split effected by
means of a stock dividend paid on June 1, 2000) of 1.4216 shares of
AES common stock for each TECONS (equal to a conversion price of
$35.1705 per share of AES common stock). Holders may convert their
TECONS prior to such time by delivering them together with an
irrevocable conversion notice to the conversion agent, Wells Fargo
Bank, N.A., 600 South Fourth Street, Minneapolis, Minnesota
55415.
About AES
The AES Corporation (NYSE: AES) is a Fortune 200 global power
company. We provide affordable, sustainable energy to 17 countries
through our diverse portfolio of distribution businesses as well as
thermal and renewable generation facilities. Our workforce of
19,000 people is committed to operational excellence and meeting
the world’s changing power needs. Our 2016 revenues were $14
billion and we own and manage $36 billion in total assets. To learn
more, please visit www.aes.com. Follow AES on Twitter
@TheAESCorp.
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. Such forward-looking statements include, but
are not limited to, those related to future earnings, growth and
financial and operating performance. Forward-looking statements are
not intended to be a guarantee of future results, but instead
constitute AES’ current expectations based on reasonable
assumptions. Forecasted financial information is based on certain
material assumptions. These assumptions include, but are not
limited to, our accurate projections of future interest rates,
commodity price and foreign currency pricing, continued normal
levels of operating performance and electricity volume at our
distribution companies and operational performance at our
generation businesses consistent with historical levels, as well as
achievements of planned productivity improvements and incremental
growth investments at normalized investment levels and rates of
return consistent with prior experience.
Actual results could differ materially from those projected in
our forward-looking statements due to risks, uncertainties and
other factors. Important factors that could affect actual results
are discussed in AES’ filings with the Securities and Exchange
Commission (the “SEC”), including, but not limited to, the risks
discussed under Item 1A “Risk Factors” and Item 7:
Management’s Discussion & Analysis in AES’ 2016 Annual
Report on Form 10-K and in subsequent reports filed with the SEC.
Readers 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.
Any Stockholder who desires a copy of the Company’s 2016 Annual
Report on Form 10-K dated on or about February 24, 2017 with
the SEC may obtain a copy (excluding Exhibits) without charge by
addressing a request to the Office of the Corporate Secretary, The
AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203.
Exhibits also may be requested, but a charge equal to the
reproduction cost thereof will be made. A copy of the Form 10-K may
be obtained by visiting the Company’s website
at www.aes.com.
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The AES CorporationInvestor Contact:Ahmed Pasha,
703-682-6451orMedia Contact:Amy Ackerman, 703-682-6399
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