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April 21, 2008 |
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CA LA ELECTRICIDAD: Restructures Corporate Debt Venezuelan news agency Agencia Bolivariana de Noticias reports that C.A. La Electricidad de Caracas has restructured its corporate debt to save money and boost investment in new projects. Business News Americas relates that C.A. La Electricidad first repurchased debt that it had issued under the control of U.S. power firm AES Corp. for US$269 million. It then sold new bonds for US$650 million. C.A. La Electricidad's President Javier Alvarado said in the report that the new debt doesn't restrict social spending. The report says that "the new debt was issued with terms favorable to C.A. La Electricidad and mostly sold on secondary international markets." Mr. Alvarado told BNamericas that C.A. La Electricidad's new investment plan "will be four times larger than its previous one." According to BNamericas, C.A. La Electricidad will construct a 500-megawatt thermo plant in the Valles del Tuy municipality and a 200-megawatt thermo plant on the Margarita island. C.A. La Electricidad expects "immediate" savings of US$32.5 million and yearly savings of US$4.7 million "as the rate was dropped to 8.5% from 10.3%," Agencia Bolivariana states. Headquartered in Caracas, Venezuela, CA La Electricidad De Caracas is a subsidiary of AES Corporation and is engaged in providing electricity services. The company operates in Caracas, Guarenas, Guatire in Miranda State and San Felipe in Yaracuy State. As of May 11, 2007, CA La Electricidad de Caracas is a subsidiary of Petroleos de Venezuela, S.A. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 2, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on C.A. La Electricidad de Caracas to 'BB-' from 'B'. The ratings were removed from CreditWatch with developing implications, where they were placed originally on Feb. 13, 2007. S&P said the outlook is stable. |
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