The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

AES bucks trend through timing

Issuer: AES CorporationAmount: $850 millionDate: September 8 2000Bookrunner: Morgan Stanley Dean Witter

Last year was the worst for high-yield markets since the crisis of the early 1990s. Default rates increased, issuance slowed down considerably, trading spreads widened out, and mutual funds saw a near continuous outflow of funds. Many issuers had to resort to more expensive forms of debt, whether short-term commercial paper or mezzanine loans, or had to risk the debt markets and pay higher premiums. So any deal that got done last year could be considered a success.

But AES Corporation wins largely on the basis of timing. Windows of opportunity were rare, and Morgan Stanley Dean Witter gauged the mood of the market well. "The tough part of any issue last year was that between marketing and launching - the prices could change so much," says Bill Kourakas, co-head of leveraged finance at MSDW. "We picked a time when that would be minimized, which was the period right after Labor Day [September 5]. We had noticed a pick-up in sentiment in the weeks before Labor Day, and anticipated that demand would build up right afterwards."

So as soon as they got back into the office on Tuesday, Kourakas and his team started on a three-day roadshow, initially looking to raise $600 million.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree