AES Extends Consent Solicitation for 2028 Notes Amid Merger Preparation with Horizon Parent

AES Corporation Streamlines Financial Strategy Through Consent Solicitation Amendments

AES Corporation (NYSE: AES) actively extends its consent solicitation process for its 5.450% Senior Notes due in 2028, now set to expire at 5:00 p.m. New York City time on March 31, 2026. This extension, up from the previous deadline of March 27, 2026, allows the company to align its financial arrangements more favorably as it approaches a significant merger. With approximately 49% of the $900 million in total outstanding principal of the 2028 Notes consenting to proposed amendments by the initial deadline, AES is on track to secure the majority required for the amendments to proceed.

The proposed changes laid out in the consent solicitation statement are designed to facilitate a robust transition as AES enters a merger with Horizon Parent, L.P. and Horizon Merger Sub, Inc. Should AES attain the necessary consents and successfully execute the supplemental indenture following the solicitation, it anticipates that the commitments under Horizon's backstop facility will decrease by the total outstanding amount of the 2028 Notes. This strategic maneuver reflects AES's ongoing efforts to optimize its financial commitments by enhancing its capital structure ahead of the merger.

The financial incentives tied to the consent solicitation include a total payment of $2,250,000, earmarked for holders who validly consent before the deadline. This approach not only encourages participation but also underscores AES's commitment to engaging with its bondholders. The engagement of experienced solicitation agents, Goldman Sachs & Co. LLC and Citigroup Global Markets Inc., alongside Global Bondholder Services Corporation as an information and tabulation agent, further solidifies the structured nature of this process.

In related corporate actions, DPL LLC, previously known as DPL Inc., and IPALCO Enterprises, Inc. have also announced extensions for their consent solicitations regarding their respective Senior Notes. Both companies seek to strengthen their financial standing by gathering necessary approvals from bondholders, highlighting a broader trend in the energy sector where companies are strategically aligning their capital structures amid market fluctuations. As regulations and operational challenges evolve, these companies' willingness to amend their financial instruments signals an agile approach to navigating the current economic landscape.