AES Gener Prints New 2021

Chilean utility AES Gener priced a new 2021 Thursday as part of a debt exchange and tender for its outstanding 2014s. In all its sold $400m of the 10-year notes at 99.037 with a 5.25% coupon to yield 5.375% or 242bp over UST, coming at the tight end of 5.375%-5.50% guidance. Close to $300m of that took the form of new money, while the remainder is to be used in the exchange. As of July 27, the company had received tenders to purchase $151.07m of 7.50% 2014s or 37.77% of the outstanding senior notes, while also receiving offers to exchange $100.20m of the notes for the new 2021. At the same in a separate local transaction, the company received tenders to purchase $93.8m of Chilean 8% notes due 2019 or about 48% of the outstanding bonds. Investors who opted for new bonds will receive $1,000 in 2021s plus $150 in cash per $1,000 principal of existing bonds if they had 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 got $1,130 per $1,000, and only had until July 27. Citi and Deutsche Bank are acting as dealer managers.