ARLINGTON, Va.--(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, firstname.lastname@example.org.
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.
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.