AES Panama Announces Final Results Of Tender Offer And Consent Solicitation For Its 6.35% Senior Notes Due 2016

Jul 06, 2015, 18:20 ET from AES Panama, S.R.L.

PANAMA CITY, July 6, 2015 /PRNewswire/ -- AES Panama, S.R.L. (the "Company") announced today the final results of its previously announced cash tender offer (the "Tender Offer") to purchase for cash (as repayment) any and all of its outstanding 6.35% Senior Notes due 2016 (the "Notes") and a related solicitation of consents (the "Consent Solicitation") to certain proposed amendments (the "Proposed Amendments") to the indenture governing the Notes (the "Indenture").  The Tender Offer and Consent Solicitation expired at 5:00 P.M., New York City time, on July 2, 2015 (the "Expiration Time"). 

On June 4, 2015, the Company commenced the Tender Offer and Consent Solicitation pursuant to the terms and subject to the conditions set forth in the Offer to Purchase (as Repayment) and Consent Solicitation Statement, dated June 4, 2015, and the related Letter of Transmittal and Consent (together, the "Tender Offer Documents").    The Company received the consents needed to authorize the Proposed Amendments by the applicable deadline, and on June 18, 2015, the Company and HSBC Bank USA, National Association, as Trustee under the Indenture, executed a supplemental indenture that contains the Proposed Amendments, providing for, among others, the elimination of most of the restrictive covenants and certain events of default applicable to the Notes. 

As of the Expiration Time, the Company had received tenders and consents representing $217,296,000 in aggregate principal amount (or 72.43%) of the outstanding Notes.  Holders who tendered their Notes after 5:00 P.M., New York City time, on June 24, 2015 and on or prior to the Expiration Time are eligible to receive $1,047.50 per $1,000 principal amount of Notes, plus accrued and unpaid interest to, but not including, July 6, 2015.  

Banco General, S.A. and Deutsche Bank Securities Inc. acted as dealer managers for the Tender Offer and as solicitation agents for the Consent Solicitation.  D. F. King & Co., Inc. acted as the information agent and tender agent for the Tender Offer and the Consent Solicitation.

The Tender Offer and the Consent Solicitation were made solely on the terms and conditions set forth in the Tender Offer Documents. Under no circumstances shall this press release constitute an offer to buy or the solicitation of an offer to sell the Notes or any other securities of the Company. 

About the Company

The Company is the largest electricity generation company in Panama both in terms of installed capacity and average energy dispatched, as well as the largest privately controlled hydro generation company in Central America, based on information provided by the CND.  The Company derives substantially all of its revenues from the sale of electricity through firm capacity and energy supply agreements, spot market sales and regional market sales.  Its principal customers are Panama's three energy distribution companies. The Company also has capacity and energy supply agreements with 11 Large Customers. Its remaining electricity sales revenues derive from spot market sales and regional exports and its electricity generation facilities are composed of five geographically diverse facilities (four hydroelectric plants and one thermal plant) that contain 16 generation units located in eastern and western Panama.  Additional information about the Company can be found at its website located at