AES talks $1 billion three-year equity units to yield 6.375%-6.875%, up 22.5%-27.5%

By Abigail W. Adams

Portland, Me., March 3 – AES Corp. plans to price $1 billion par-of-$100 three-year equity units after the market close on Thursday with price talk for a yield of 6.375% to 6.875% and a threshold appreciation premium of 22.5% to 27.5%, according to a market source.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Securities Inc. and Morgan Stanley & Co. LLC are bookrunners for the registered offering, which carries a greenshoe of $150 million.

The units will consist of a 10% interest in one share of $1,000-par series A cumulative perpetual convertible preferred stock and a stock purchase contract.

Proceeds will be used to develop AES’s renewable energy and utility businesses, including its liquid natural gas infrastructure.

AES is an Arlington, Va.-based energy company.

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