New AES Loan Soars Into Par Territory
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New AES Loan Soars Into Par Territory

AES Corp.'s revamped loan has popped up roughly 10 points since its balance sheet overhaul was completed two weeks ago. Dealers said $5-10 million pieces of all the tranches changed hands. The company's new "A" loan was quoted in the 94 1/2-95 context. The "B" loan traded between the 91-92 range, and the company's "C" loan moved in the 92-92 1/2 range. Market players said the new security package, the large coupon of LIBOR plus 61Ž 2% across all the tranches and expected asset sales propelled the paper.

AES management has said it expects approximately $1 billion in asset sales over the next year, according to a company spokeswoman. Most recently, AES announced plans to sell two of its African businesses for roughly $329 million and two of its Australian businesses for approximately $165 million.

The refinanced facility provides lenders with the extra security of first-priority liens on all the stock of the company's domestic subsidiaries and 65% of the company's foreign subsidiaries. In addition, holders of the company's former $850 million revolver, rolled into a $300 million revolver and a $550 million "A" term loan, still maintain extra guarantees to four of AES' subsidiaries. Holders of the former AES EDC Funding II loan make up the new "C" piece of the same size and retain their collateral in the EDC subsidiary. The lenders in the company's $425 million loan, rolled into the new "B" piece, do not have any additional collateral (LMW, 12/16).

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