THE AES CORPORATION (NYSE:AES-C) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.
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Entry into a Definitive Material Agreement.
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On May 24, 2017, The AES Corporation (AES or the Company) entered
into a $525 million credit agreement (the Credit Agreement),
dated as of May 24, 2017, among The AES Corporation, as borrower,
the banks listed therein (the Banks) and Barclays Bank PLC, as
administrative agent (the Agent). The Credit Agreement provides
for borrowings in an aggregate principal amount of up to $525
million (the Facility; and the loans thereunder, the Loans). The
proceeds of the Facility will be used by the Company to refinance
its existing 6.75% Term Convertible Trust Securities due 2029
(the Term Trust Convertible Securities) and for general corporate
purposes.
into a $525 million credit agreement (the Credit Agreement),
dated as of May 24, 2017, among The AES Corporation, as borrower,
the banks listed therein (the Banks) and Barclays Bank PLC, as
administrative agent (the Agent). The Credit Agreement provides
for borrowings in an aggregate principal amount of up to $525
million (the Facility; and the loans thereunder, the Loans). The
proceeds of the Facility will be used by the Company to refinance
its existing 6.75% Term Convertible Trust Securities due 2029
(the Term Trust Convertible Securities) and for general corporate
purposes.
Borrowings under the Facility are subject to customary conditions
to borrowing and will bear interest at a variable annual rate
based on LIBOR plus 2.00% or Base Rate plus 1.00%. The Facility
will mature on the fifth anniversary of the closing date.
to borrowing and will bear interest at a variable annual rate
based on LIBOR plus 2.00% or Base Rate plus 1.00%. The Facility
will mature on the fifth anniversary of the closing date.
Subject to the following sentence, the Facility is voluntarily
prepayable from time to time without premium or penalty. AES
shall pay a prepayment premium in connection with any prepayment,
repayment or amendment of the Loans with the proceeds of, or any
conversion of the Loan into any new or replacement or amended
tranche of term loans bearing interest at an effective interest
rate less than the effective interest rate applicable to the
Loans, on or before the first anniversary of the closing date.
Consistent with the terms of the Companys existing revolver and
term loan, the Facility is mandatorily prepayable with the net
cash proceeds of certain dispositions of assets and upon the
occurrence of a change of control.
prepayable from time to time without premium or penalty. AES
shall pay a prepayment premium in connection with any prepayment,
repayment or amendment of the Loans with the proceeds of, or any
conversion of the Loan into any new or replacement or amended
tranche of term loans bearing interest at an effective interest
rate less than the effective interest rate applicable to the
Loans, on or before the first anniversary of the closing date.
Consistent with the terms of the Companys existing revolver and
term loan, the Facility is mandatorily prepayable with the net
cash proceeds of certain dispositions of assets and upon the
occurrence of a change of control.
The Credit Agreement also contains customary representations,
covenants and events of default. Failure to meet the covenants
beyond applicable grace periods could result in acceleration of
the Loans and/or termination of the Facility.
covenants and events of default. Failure to meet the covenants
beyond applicable grace periods could result in acceleration of
the Loans and/or termination of the Facility.
The foregoing is a summary of certain terms of the Credit
Agreement and is neither complete nor inclusive of all material
terms. The foregoing summary of the Credit Agreement is subject
to, and qualified in its entirety by, the full text of the Credit
Agreement, which is attached as Exhibit 10.1 and incorporated
herein by reference.
Agreement and is neither complete nor inclusive of all material
terms. The foregoing summary of the Credit Agreement is subject
to, and qualified in its entirety by, the full text of the Credit
Agreement, which is attached as Exhibit 10.1 and incorporated
herein by reference.
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Item 2.03
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Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information provided in Item 1.01 of this Form 8-K is hereby
incorporated by reference into this Item 2.03.
incorporated by reference into this Item 2.03.
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Item 9.01
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Financial Statements and Exhibits.
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(d) Exhibit
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Exhibit Number
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Exhibit Description
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10.1
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Credit Agreement dated as of May 24, 2017 among The AES
Corporation, as borrower, the banks listed therein and Bank of America, N.A., as administrative agent. |
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THE AES CORPORATION> (NYSE:AES-C) Recent Trading Information
THE AES CORPORATION> (NYSE:AES-C) closed its last trading session up +0.01 at 50.47 with 14,955 shares trading hands.
