AES Corp.'s bank debt benefited from the sale of Cilcorp--its utility holding company whose largest subsidiary is Central Illinois Light Company--to Ameren Corp. for $1.4 billion. The market for AES' "A" piece climbed into the 97-98 context and the "B" and "C" tranches were said to be trading in the 94-95 1/2 range. AES received roughly $500 million in net equity, $250 million of which was used to pay down the company's bank debt.
While the amount was distributed among the term loans on a pro rata basis, the $550 million "A" term loan received a larger portion. That tranche derived from the company's former $850 million revolver and it has a claim on $850 million since no distribution is afforded to the company's new $300 million revolver, which was carved from the same original piece. A spokesman for the company confirmed that the bank debt received the paydown.