AES Dominicana Funds Bond Tender

AES Dominicana has raised $284m in new 10-year NC5 bonds to fund a buyback of more expensive debt. The first cross-border issue from a Dominican corporate in more than 3 years drew about $800m in orders, according to bankers on the sale. The B minus bond priced at par with a 9.50% coupon, the tight end of 9.50%-9.75% yield guidance. The bond traded up 2 points Friday afternoon, according to a trader. The subsidiary of US-based power company AES launched a tender last week for any and all of the $156m in AES Dominicana 11.000% of 2015 bonds and $102m of 10.875% of 2013s issued by its Itabo unit. It is offering holders $1,031.25 per $1,000.00 for the AES bonds and $1,030.50 per $1,000.00 for the Itabo bonds, plus a $30 premium on each if tendered prior to a November 10 early deadline. The offer expires November 26. Credit Suisse and Deutsche Bank managed both the new bond sale and the tender offer. The last Dominican corporate cross-border issue was a $175m 10-year from EGE Haina in April 2007, according to Dealogic.