Shearman & Sterling advised Citigroup Global Markets, J.P. Morgan Securities, Scotia Capital (USA), Credit Suisse Securities (USA) and Banco General, as initial purchasers for a Rule 144A/Reg S offering of $1.38 billion of 4.375 percent senior secured notes due 2030 by AES Panama Generation Holdings, a special purpose vehicle owned indirectly by the AES Corporation, and arrangers for a related $105 million term loan facility and a $50 million liquidity facility, all secured pari passu by the same collateral.
The issuer applied the proceeds of the term loans and the notes to fund back-to-back loans to various operating companies of AES in Panama, in turn, to repay and refinance their existing indebtedness and to finance new projects. The issuer will also use the proceeds of the liquidity loans to finance short-term working capital needs of the issuer.
The notes were listed on the Panamanian Stock Exchange and will be listed on the Singapore Stock Exchange.
Incorporated in 1981, AES is a power generation and utility company, that seeks to provide affordable, sustainable energy to 14 countries through a diverse portfolio of thermal and renewable generation facilities and distribution businesses.
The Shearman & Sterling team below also included international associates Alejandro Medina and Gonzalo Robles.