AES ups revolver to $450 million, amends credit agreement for unsecured debt repurchases

By Sara Rosenberg

New York, March 18 - The AES Corp. increased the size of its secured revolver to $450 million from $250 million by expanding its bank group. Furthermore the company amended its credit facility to gain financial flexibility, including a change that allows the company to use available cash to repurchase existing unsecured debt.

There were no changes in pricing, financial covenants or the maturity date, which is July 2007, according to a company news release.

"This expanded credit facility is part of our financial plan to strengthen our capital structure and improve our credit quality," said Barry Sharp, executive vice president and chief financial officer, in the release. "It also lets us reduce interest expense by using more of our available cash to pay down debt, consistent with our earnings guidance for 2004, while meeting our liquidity targets."

AES is an Arlington, Va., power company.

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