Arlington, Va. (STL.News) – The AES Corporation (NYSE: AES) today announced that in September it voluntarily prepaid $443 million of recourse debt. As a result, the Company’s long-term recourse debt balance has been reduced to $3.2 billion as of September 30, 2019. The Company previously planned to reduce its recourse debt by $300 million through 2022, including $150 million in 2019. With this prepayment, the Company has achieved investment grade levels on the two primary credit metrics as of September 30, 2019.
“We are very pleased that we were able to accelerate and increase our recourse debt reduction,” said Gustavo Pimenta, AES Executive Vice President and Chief Financial Officer. “By prepaying another $443 million, we have further strengthened our balance sheet and the likelihood of attaining investment grade ratings in 2020.”
The prepayment, which was funded with cash on hand, includes $343 million of the Company’s Senior Secured Term Loan due in 2022 and $100 million of its 4.875% Senior Unsecured Notes due in 2023.