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AES Announces Expiration of Consent Solicitation for its 2032 Notes and Amendment and Extension of Consent Solicitations for its 2028 Notes, 2030 Notes and 2031 Notes

AES Confirms Consent for Senior Notes Amid Merger Process

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    <h3>Information</h3>
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    <h3>AI Summary</h3>
    <p>AES Corporation has successfully secured consents for its 2032 Senior Notes, which will facilitate an amendment to the indenture pending the completion of a proposed merger. This merger, expected in late 2026 or early 2027, is crucial for AES’s financial restructuring and could lead to enhanced operational flexibility and reduced walkaway costs on debt.</p>
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    <h3>Key Points</h3>
    <ul><li>AES received consents for its 5.800% Senior Notes due 2032.</li><li>2032 Notes amendments are effective upon merger completion.</li><li>Consent fees for 2028, 2030, and 2031 Notes are now extended.</li><li>Additional consent fees may vary based on participation levels.</li><li>Merger expected to complete late 2026 or early 2027.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Horizon Parent, L.P. (N/A)</strong>: Parent is facilitating AES’s merger process, impacting future financial structure.</li><li><strong>Goldman Sachs &amp; Co. LLC (GS)</strong>: Acting as solicitation agent, indicating involvement in managing the debt restructuring.</li><li><strong>Citigroup Global Markets Inc. (C)</strong>: Also serving as solicitation agent, reflecting their role in the debt positioning strategy.</li></ul>
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  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>This news fits within &#039;Corporate Developments&#039; due to its direct influence on AES&#039;s financial positioning and restructuring. The successful completion of the consent solicitations and merger discussions is vital for investor confidence and bondholder stability.</p>
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    <h3>Market-Moving</h3>
    <ul><li>Successful completion of the merger could enhance AES’s financial stability.</li><li>Uncertainty around merger timing may affect AES’s stock volatility.</li><li>Changes to consent fees may encourage more bondholder participation.</li><li>Risk of termination of the merger agreement could sour investor sentiment.</li></ul>
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    <h3>Key Facts</h3>
    <ul><li>Consent for 5.800% Senior Notes due 2032 obtained as of March 19, 2026.</li><li>Amendments to 2032 Notes effective only upon merger completion.</li><li>Revised consent solicitations for 2028, 2030, and 2031 Notes extended to March 24, 2026.</li><li>Consent fee for the 2028, 2030, and 2031 Notes ranges from $2.50 to $5.00 per $1,000.</li><li>Merger expected to take place late 2026 or early 2027.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Invest in AES for potential appreciation given upcoming merger benefits.</p>
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<article>
    <h2>AES Corporation Updates on Consent Solicitations for Various Senior Notes</h2>
    <p>ARLINGTON, Va., March 19, 2026 /PRNewswire/ -- The <strong>AES Corporation (NYSE: AES)</strong> has announced the successful completion of its <strong>2032 Notes Consent Solicitation</strong> for its <strong>5.800% Senior Notes due 2032</strong>. The solicitation, which sought consent from registered holders, expired on March 18, 2026, at 5:00 p.m. New York City time.</p>
    
    <section>
        <h3>Details on the 2032 Notes Consent Solicitation</h3>
        <p>The solicitation followed the terms outlined in the <em>Consent Solicitation Statement</em> dated March 5, 2026, and supplemented on March 16, 2026. The <strong>2032 Notes Consent Fee</strong> of $2.50 per $1,000 aggregate principal amount will be awarded to the holders who validly delivered their consents before the expiration time.</p>
        <p>On March 18, 2026, AES executed a supplemental indenture with the trustee governing the <strong>2032 Notes</strong>. While effective immediately, the amendments will only take full effect upon the completion of a proposed merger.</p>
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        <h3>Amendment and Extension of Consent Solicitations for Other Senior Notes</h3>
        <p>AES has also amended and extended consent solicitations for its <strong>5.450% Senior Notes due 2028</strong>, <strong>3.950% Senior Notes due 2030</strong>, and <strong>2.450% Senior Notes due 2031</strong>. This amendment follows the <em>Revised Consent Solicitation</em> announcement and seeks to adoptthe proposed amendments to the indentures governing these notes.</p>
        <ul>
            <li>The expiration time for the Revised Consent Solicitations has been extended to March 24, 2026.</li>
            <li>The consent fee for consenting holders will also be adjusted as specified in the announced supplements.</li>
            <li>The revisions entail not only modifying terms but also a waiver of the change of control relating to the merger.</li>
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    <section>
        <h3>Implications of the Proposed Merger</h3>
        <p>The consent solicitations were initiated at the request of <strong>Horizon Parent, L.P.</strong>, relating to a merger agreement dated March 1, 2026. In the proposed merger, confirmed under specific terms and conditions, Horizon Merger Sub, Inc. plans to merge into AES, making AES the surviving entity.</p>
        <p>If the merger fails to close, no consent payments will be disbursed, and the proposed amendments will not become effective.</p>
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    <section>
        <h3>Future Considerations</h3>
        <p>Holders of each series of notes are urged to review the modifications as outlined in the latest <em>Revised Solicitation Statement</em>. These adjustments are crucial for those involved in the financial dealings tied to <strong>AES</strong> and are indicative of the company's strategic positioning amidst ongoing market and operational adjustments.</p>
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AES Corporation has successfully secured consents for its 2032 Senior Notes, which will facilitate an amendment to the indenture pending the completion of a proposed merger. This merger, expected in late 2026 or early 2027, is crucial for AES’s financial restructuring and could lead to enhanced operational flexibility and reduced walkaway costs on debt.

aes-announces-expiration-of-consent-solicitation-for-its-2032-notes-and-amendment-and-extension-of-consent-solicitations-for-its-2028-notes-2030-notes-and-2031-notes

AES Announces Expiration of Consent Solicitation for its 2032 Notes and Amendment and Extension of Consent Solicitations for its 2028 Notes, 2030 Notes and 2031 Notes

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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