DEBT

Recourse Debt — On April 30, 2013, the Company issued $500 million aggregate principal amount of 4.875% senior notes due 2023. On May 17, 2013, the Company issued an additional $250 million aggregate principal amount of 4.875% senior notes due 2023 to form a single series with the notes issued on April 30, 2013. After this offering, the Company completed the redemption of $928 million aggregate principal of its existing 7.75% senior notes due 2014, 7.75% senior notes due 2015, 9.75% senior notes due 2016, and 8.0% senior notes due 2017 through respective tender offers in May 2013. In June 2013, the Company redeemed an additional $122 million of its 7.75% senior notes due 2014 as per the optional redemption provisions of the senior note indentures. As a result of these transactions, the Company voluntarily reduced outstanding principal by $300 million and extended maturities of an additional $750 million to 10 years. The Company recognized a loss on extinguishment of debt of $163 million on these transactions that is included in the Condensed Consolidated Statement of Operations.

Non-Recourse Debt

Significant transactions

During the six months ended June 30, 2013, we had the following significant debt transactions at our subsidiaries:


•	Tietê issued new debt of $496 million partially offset by repayments of $396 million;


•	El Salvador issued new debt of $310 million partially offset by repayments of $301 million;


•	Sul issued new debt of $150 million partially offset by repayments of $37 million;


•	Mong Duong drew $210 million under its construction loan facility;


•	DPL terminated its $425 million term loan and replaced it with a new $200 million term loan;


•	IPL issued new debt of $170 million partially offset by repayments of $110 million; and


•	Masinloc refinanced its senior debt facility of $500 million and incurred a loss on extinguishment of debt of $43 million. See Note 12-Other Income and Expense for further information.

Debt in default

The following table summarizes the Company’s subsidiary non-recourse debt in default or accelerated as of June 30, 2013 and is classified as current non-recourse debt unless otherwise indicated:



	Primary Nature of Default	June 30, 2013
Subsidiary	Primary Nature of Default	Default Amount		Net Assets
		(in millions)
Maritza	Covenant	$	832	$	620
Changuinola	Covenant	372		231
Sonel	Covenant	268		375
Kavarna	Covenant	197		82
Saurashtra	Covenant	22		13
		$	1,691

The above defaults are not payment defaults, but are instead technical defaults triggered by failure to comply with other covenants and/or other conditions such as (but not limited to) failure to meet information covenants, complete construction or other milestones in an allocated time, meet certain minimum or maximum financial ratios, or other requirements contained in the non-recourse debt documents of the Company.

In addition, in the event that there is a default, bankruptcy or maturity acceleration at a subsidiary or group of subsidiaries that meets the applicable definition of materiality under the corporate debt agreements of The AES Corporation, there could be a cross-default to the Company’s recourse debt. As of June 30, 2013, none of the defaults listed above individually or in the aggregate results in a cross-default under the recourse debt of the Company.