AES Provides Update on Asset Sales; Total Aggregate Proceeds of $463M

The AES Corporation AES announced today that the Company has signed agreements to sell AES Red Oak LLC an 832 megawatt combined cycle gas turbine plant located in New Jersey, to Energy Capital Partners and AES Ironwood Inc., a 705 MW CCGT plant located in Pennsylvania, to PPL Generation LLC, a wholly owned subsidiary of PPL Corporation. AES further announced that it has completed the previously announced sale of AES Energia Cartagena S.R.L, a 1,199 MW CCGT plant in Spain, to GDF Suez International Holdings. Aggregate proceeds from the sale of AES' 100 percent interest in Red Oak and Ironwood and 80 percent of its interest in Cartagena are approximately $463 million. Use of proceeds will be evaluated in accordance with AES' capital allocation policy to maximize total shareholder returns by paying down debt, investing in new businesses or repurchasing shares. The three businesses together contributed approximately $26 million of net income to AES in 2011 after adjusting for ownership interests, unrealized foreign currency losses and mark-to-market derivatives losses. With total proceeds of $463 million, the implied aggregate P/E multiple for these transactions is 17.5 times estimated 2011 earnings.