AES Corp. bank debt got a slight boost from the news that the company has reached agreements to conduct three asset sales that will produce about $327 million in proceeds. The company's "B" piece was quoted in the 97 3/4 98 1/2 context, up from the 96 1/2 97 1/2 range after the news. AES will apply 80% of the proceeds from these latest asset sales to its senior bank and bond debt on a pro rata basis, explained Ahmed Pasha, AES' investor relations spokesperson.
The three transactions included the sale of AES's 100% ownership interest in two generation businesses in Bangladesh to a division of CDC Group, the sale of its 32% ownership of AES Oasis Limited to the IDB Infrastructure Fund managed by Emerging Market Partnership, and the sale of its 100% equity interest in Mountainview Power Company to Sequoia Generating. AES has already received cash proceeds of $25 million from the closing of the Mountainview transaction.
It will receive another $5 million on April 15 and $20 million if certain project milestones are achieved. The other two transactions are expected to close by the end of the third quarter, if not before.