AES Gener Preps New Issue

Chile’s AES Gener could price a new 5.25% 2021 as soon Thursday as it looks to retire $400m in outstanding 7.5% 2014s. The electricity provider is offering the 2021s or cash to holders of the 2014s. Investors who opt for new bonds will receive $1,000 in 2021s plus $150 in cash per $1,000 principal of existing bonds if tendered prior to July 27. Thereafter, they will receive new bonds plus $110 in cash as long as they tender before the final deadline of August 10. Holders choosing cash will get $1,130 per $1,000, and have only until July 27. Gener is also separately tendering for its local 8.0% 2019 bonds in a domestic offer. Fitch has put an up to $475m size on the new issue after rating it BBB minus. The offer is contingent upon a minimum $200m overall acceptance to the USD tender, as well as Gener successfully issuing enough new 2021s to cover costs associated with the cash portion of the USD bond tender and the local bond tender. Citi and Deutsche Bank are acting as dealer managers.