The bank debt of AES Corporation was active last week with the revolver changing hands in the 84-87 range, up from the low 80s. The recent activity in the name comes after the company announced that it would complete a new $1.6 billion credit facility. The new credit is earmarked to refinance the company's existing $850 million revolver maturing in 2003, the $425 million term loan due in August 2003 and the $263 million term loan for subsidiary AES EDC Funding II. The new credit, however, still needs 100% lender approval.
The company also announced recently that it would exchange up to $500 million of its near-term notes for cash and portions of a new senior secured note offering with a 10% coupon. The exchange applies to the company's 8.75% notes due this year and its 7.375% remarketable and redeemable securities, which are due in 2013 but puttable in 2003. Calls to Barry Sharp, cfo, were referred to a spokesperson, who did not return calls by press time.