Uría steers AES Dominicana´s $300m bonds offer

Uría Menéndez has advised AES Dominicana on the tender offer launched by AES Andres BV and another group´s subsidiary for the purchase of outstanding notes and new bonds

AES Dominicana, a division of US power company AES Corp in the Dominican Republic, extended its debt profile at lower rates by selling $300 million worth of new bonds to fund the buyback of outstanding notes.

AES Andres B.V. and Dominican Power Partners, two operative subsidiaries of AES Dominicana, have announced as co-issuers early results of the previously announced offer to purchase for cash any and all of their 7.950% senior notes due 2026.

Payment for notes validly tendered in the tender offer, including accrued and unpaid interest and fees and expenses payable in connection with the tender offer, is expected to be financed with the net proceeds of Andres BV’s offering of new $300 million 5.700% Notes due 2028 that priced on April 29, 2021 and is expected to close on the Early Settlement Date (the “Bond Offering”). The tender offer is conditioned on the successful completion of the bond offering. This tender offer is not an offer to sell or a solicitation of an offer to buy the new notes.

The funds raised by AES Andres BV in the context of the new issuance will be used to finance the tender offer, as well as to pay the transaction’s expenses and to repay other additional corporate debt.

The banks that supported the transaction were Citigroup, JP Morgan and Scotiabank.

“This has been our most competitive placement in the 16 years in which AES Dominicana has been in the local and international capital markets, as a clear sign of confidence in the company and in the rational future expansion of the country’s electricity market”, said Edwin De los Santos, president of AES in the Dominican Republic.

Uría Menéndez advised AES Dominicana with a Madrid office team comprising Corporate partner Javier Tortuero (pictured left), Tax partner David López Pombo (pictured right), Tax senior associate Violeta Pina Montaner and Tax junior associate Miloslava Ilcheva Srandeva, also with the participation of New York office Corporate associate Sergio Moreno Merodio.