AES Announces Launch of Consent Solicitation for Senior Notes | AES Stock News

, /PRNewswire/ -- The AES Corporation (the "Company" or "AES") (NYSE: AES) today announced that it has commenced consent solicitations (each a "Consent Solicitation" and collectively, the "Consent Solicitations") to amend each of the indentures (each an "Indenture" and, collectively, the "Indentures") governing certain series of its outstanding notes, as set forth in the table below (collectively, the "Notes"). The terms and conditions of the Consent Solicitations are set forth in a consent solicitation statement dated as of March 5, 2026 (as it may be amended and supplemented from time to time, the "Consent Solicitation Statement").Title of Series of NotesCUSIP NumbersAggregate Principal Amount OutstandingConsent Fee(1)5.450% Senior Notes due 2028 (the "2028 Notes")00130HCH6$900,000,000$1.003.950% Senior Notes due 2030 (the "2030 Notes")00130HCC7U0080RAR1$700,000,000$1.002.450% Senior Notes due 2031 (the "2031 Notes")00130HCG800130HCF0U0080RAT7$1,000,000,000$1.005.800% Senior Notes due 2032 (the "2032 Notes")00130HCM5$800,000,000$1.00(1) For each $1,000 principal amount of Notes.Amendment & ConsentAs previously announced, on March 1, 2026, the Company entered into that certain Agreement and Plan of Merger (as amended, supplemented or otherwise modified from time to time, the "Merger Agreement"), by and among the Company, Horizon Parent, L.P. ("Parent") and Horizon Merger Sub, Inc., a wholly owned subsidiary of Parent ("Merger Sub"), pursuant to which, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into AES (the "Merger"), with AES surviving the Merger. Parent and Merger Sub were formed by an investor consortium led by affiliates of Global Infrastructure Partners ("GIP"), a part of BlackRock, and the EQT Infrastructure VI fund ("EQT") for the purposes of engaging in the transactions contemplated by the Merger Agreement. In connection with the Merger, AES is making the Consent Solicitations at the request and expense of Parent. The consummation of the Merger is not conditioned on the consummation of the Consent Solicitations or upon any of the Proposed Amendments (as defined below) becoming operative.The consummation of the Merger will constitute a "Change of Control" under each of the Indentures, which may result in a "Change of Control Triggering Event" (as defined in the Indentures) for a series of Notes if the rating on such series of Notes is lowered below an investment grade rating by both of the Rating Agencies (as defined in the Indentures) as a result of the Merger. Neither AES nor Parent currently expects that the ratings of the Notes will be downgraded by any Rating Agency.Subject to the conditions described in the Consent Solicitation Statement, AES is seeking consent from the registered holders ("Holders") of each series of Notes to amend the Indentures to (i) provide that the Merger will not constitute a "Change of Control", (ii) provide that affiliates of GIP and EQT will be "Permitted Holders", (iii) provide that the successor company in a merger, consolidation or similar transaction may be a limited liability company or limited partnership (in addition to a corporation) (the "Merger Covenant Amendment") and (iv) add to, amend, supplement or change certain other defined terms contained in the Indentures and Notes related to the foregoing (collectively, the "Proposed Amendments").Only Holders of record of a series of Notes as of 5:00 p.m., New York City time, on February 27, 2026 (the "Record Date") are eligible to deliver consents to the Proposed Amendments applicable to such series of Notes. The Consent Solicitation with respect to any series of Notes will expire at 5:00 p.m., New York City time, on March 11, 2026, or such later time and date to which such Consent Solicitation is extended (such time and date, as it may be extended with respect to any series of Notes, the "Expiration Time"). A Holder may validly revoke its consent with respect to a series of Notes prior to the earlier of the Expiration Time and the time of execution of the relevant Supplemental Indenture (as defined below) with respect to such series of Notes (the "Revocation Deadline"), as described in the Consent Solicitation Statement. Subject to the terms and conditions of the Consent Solicitations, the Company is offering Holders of any series of Notes who validly deliver (and do not validly revoke) their consents with respect to such series of Notes prior to the applicable Expiration Time (each such Holder a "Consenting Holder") consent consideration equal to $1.00 per $1,000 in principal amount of such series of Notes held by such Consenting Holder (the "Consent Fee"). The payment of the Consent Fee with respect to each Consent Solicitation is conditioned upon satisfaction or waiver of certain conditions set forth in the Consent Solicitation Statement, including obtaining the Requisite Consents (as defined below) with respect to the applicable series of Notes, and additionally upon the consummation of the Merger. The Consent Fee for each series of Notes is expected to be paid substantially concurrently with the consummation of the Merger, if it is consummated, which is currently expected to be in late 2026 or early 2027.Holders who have validly delivered their consents prior to the applicable Expiration Time but who have validly revoked their consents prior to the applicable Revocation Deadline will not be eligible to receive the Consent Fee unless they validly deliver their consents again prior to such Expiration Time, and do not validly revoke their consents again prior to such Revocation Deadline.The Proposed Amendments must be consented to by Holders of a majority of the aggregate principal amount the applicable series of Notes outstanding (the "Requisite Consents") in order to be effective with respect to such series of Notes; provided, however, that with respect to the 2028 Notes, the 2031 Notes and the 2032 Notes, the Merger Covenant Amendment requires the consent of Holders of a majority of the aggregate principal amount outstanding of each of the 2028 Notes, the 2031 Notes and the 2032 Notes, with each series voting as a separate class. If the Requisite Consents are received for any series of Notes, it is expected that a supplemental indenture to the applicable Indenture (each, a "Supplemental Indenture") setting forth the Proposed Amendments will be entered into by AES and the trustee for such series of Notes (each a "Trustee" and collectively, the "Trustees") promptly after receipt of such Requisite Consents, whether before or after the Expiration Time. Although the Supplemental Indenture for a series of Notes will become effective upon its execution by AES and the applicable Trustee, the Proposed Amendments contained therein will only become operative upon the consummation of the Merger and the payment of the Consent Fee with respect to such series of Notes. Upon becoming operative, the Proposed Amendments will be binding on all Holders of the applicable series of Notes. If AES fails to obtain the Requisite Consents for any series of Notes, the other conditions to the Consent Solicitation for such series of Notes are not satisfied or waived or the Merger is not consummated, no Consent Fee will be paid with respect to such series of Notes, the Proposed Amendments with respect to such series of Notes will not become operative and such series of Notes will continue to be subject to the current terms and conditions of the applicable Indenture.The complete terms and conditions of the Consent Solicitations are set forth in the Consent Solicitation Statement that is being sent to the Holders of each series of the Notes. AES may, in its sole discretion, extend, amend or terminate any Consent Solicitation with respect to a series of Notes at any time and from time to time as described in the Consent Solicitation Statement.Goldman Sachs & Co. LLC and Citigroup Global Markets Inc. are serving as solicitation agents (the "Solicitation Agents") in connection with the Consent Solicitations. Global Bondholder Services Corporation ("GBSC") is serving as the information agent and tabulation agent in connection with the Consent Solicitations. Questions regarding the terms of the Consent Solicitations may be directed to the Solicitation Agents to Goldman Sachs & Co. LLC at (800) 828-3182 (toll free) or to Citigroup Global Markets Inc. at (800) 558-3745. Questions or requests for assistance in completing and delivering a consent or requests for copies of the Consent Solicitation Statement may be directed to GBSC at (855) 654-2014 (toll free) or by email to contact@gbsc-usa.com.This press release does not constitute an offer to sell or an offer to purchase, or a solicitation of an offer to purchase or sell, any security. The Consent Solicitations are only being made pursuant to the terms of the Consent Solicitation Statement. No recommendation is being made as to whether Holders should consent to the Proposed Amendments. The Consent Solicitations are not being made in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such solicitation under applicable state or foreign securities or "blue sky" laws.About AESThe AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. About Global Infrastructure Partners (GIP), a Part of BlackRockGlobal Infrastructure Partners (GIP), a part of BlackRock, is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors.GIP's scaled platform has over $193 billion in assets under management. We believe that our focus on real infrastructure assets, combined with our deep proprietary origination network and comprehensive operational expertise, enables us to be responsible stewards of our clients' capital and create positive economic impact for communities.About EQTEQT is a purpose-driven global investment organization with EUR 270 billion in total assets under management (EUR 141 billion in fee-generating assets under management) as of 31 December 2025, within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.Important Information and Where to Find ItThis communication may be deemed to be solicitation material in respect of the proposed transaction between AES and Horizon Parent, L.P. In connection with the proposed transaction, AES expects to file a proxy statement on Schedule 14A with the Securities and Exchange Commission ("SEC"). AES also may file other documents with the SEC regarding the proposed transaction. This communication is not a substitute for the proxy statement or any other document AES has filed or may file with the SEC and send to its stockholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders will be able to obtain free copies of the proxy statement (when available) and other documents that are filed or will be filed with the SEC by AES through the SEC's website at www.sec.gov or through AES' website at https://www.aes.com/investors/ or by contacting AES' Investor Relations Team at invest@aes.com.Participants in the SolicitationAES, its directors and officers and other employees may be deemed to be participants in the solicitation of proxies from AES' stockholders in connection with the proposed transaction. Additional information regarding the identity of the participants, including a description of their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the proposed transaction (if and when they become available). Information relating to the foregoing can also be found in the "Compensation Discussion & Analysis," "Security Ownership of Certain Beneficial Owners, Directors, and Executive Officers" and "Proposal 1: Election of Directors" sections in AES' proxy statement for its 2025 annual meeting of stockholders, which was filed with the SEC on March 19, 2025 (the "Annual Meeting Proxy Statement"). To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Annual Meeting Proxy Statement, such information has been or will be reflected on AES' Initial Statements of Beneficial Ownership on Form 3 and Statements of Change in Ownership on Form 4 that are filed or will be filed with the SEC. You may obtain free copies of these documents (when available) using the sources indicated above.Cautionary Statement Regarding Forward-Looking StatementsThis communication includes certain "forward-looking statements" within the meaning of, and subject to the safe harbor created by, the federal securities laws, including statements related to the proposed transaction between AES and Horizon Parent, L.P. (the "Transaction"), including financial estimates and statements as to the expected timing, completion and effects of the Transaction. These forward-looking statements are based on AES' current expectations, estimates and projections regarding, among other things, the expected date of closing of the Transaction and the potential benefits thereof, its business and industry, management's beliefs and certain assumptions made by AES, all of which are subject to change. Forward-looking statements involve a number of risks and uncertainties, because they relate to events and depend upon future circumstances that may or may not occur, such as the consummation of the Transaction and the anticipated benefits thereof. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: (i) the completion of the Transaction on anticipated terms and timing; (ii) the risk that the conditions to the completion of the Transaction, including obtaining required stockholder and regulatory approvals, are not satisfied in a timely manner or at all; (iii) potential litigation relating to the Transaction, including resulting expense or delay, and the effects of any outcomes related thereto; (iv) the risk that disruptions from the Transaction will harm AES' business, including current plans and operations; (v) the ability of AES to retain and hire key personnel; (vi) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Transaction; (vii) continued availability of capital and financing and rating agency actions; (viii) certain restrictions during the pendency of the Transaction that may impact AES' ability to pursue certain business opportunities or strategic transactions; (ix) significant transaction costs associated with the Transaction; (x) the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (xi) the occurrence of any event, change or other circumstance that could give rise to the termination of the Transaction, including in circumstances requiring AES to pay a termination fee or other expenses; (xii) competitive responses to the Transaction; and (xiii) the risks and uncertainties pertaining to AES' business, including those set forth in Part I, Item 1A of AES' most recent Annual Report on Form 10-K and Part II, Item 1A of AES' subsequent Quarterly Reports on Form 10-Q, as such risk factors may be amended, supplemented or superseded from time to time by other reports filed by AES with the SEC. These risks, as well as other risks associated with the Transaction, will be more fully discussed in the proxy statement to be provided to AES' stockholders in connection with the Transaction. While the list of factors presented here is, and the list of factors to be presented in the proxy statement will be, considered representative, no such list should be considered a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. These forward-looking statements speak only as of the date they are made, and AES does not undertake to and specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Contacts AES Investor Contact:Susan Harcourt 703-682-1204, susan.harcourt@aes.comAES Media Contact:Amy Ackerman 703-682-6399, amy.ackerman@aes.comGIP Contact:Mustafa Riffat, 917-747-4156, mustafa.riffat@blackrock.comEQT Contact:Mathilde Milch, 917-510-6626, mathilde.milch@eqtpartners.comSOURCE The AES Corporation