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Arlington energy company to offer senior notes
Sydney Lake //November 20, 2020//
Arlington energy company to offer senior notes
Sydney Lake// November 20, 2020//
Arlington-based energy company AES Corp. announced Thursday its plans to sell $1.8 billion in debt in a private offering to institutional buyers.
The company will offer $800 million in 1.375% senior notes due in 2026 and $1 billion in 2.45% senior notes due in 2031.
AES intends to allocate an amount equal to the net proceeds from the sale toward one or more eligible green projects, according to the company. AES Corp. will use the net proceeds from the sale to fund purchases of senior notes due in 2025, 2026 and 2027 in tender offers; to fully redeem tender offer notes not tendered in connection with those tender offers; to fully redeem the $65.0 million aggregate principal amount outstanding of its 4.5% notes due 2023 and $63.0 million aggregate principal amount of its 5.5% notes due in 2024; and to pay certain related fees and expenses and for general corporate purposes.
The offering is expected to close on Dec. 4.
Fortune 500 company AES Corp. used to focus the majority of its business on coal, but since 2011 has reduced its coal generating power in favor of greener options, such as solar power.
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