NON-RECOURSE DEBT — The following table summarizes the carrying amount and terms of non-recourse debt at our subsidiaries as of the periods indicated (in millions):



NON-RECOURSE DEBT	Weighted Average Interest Rate	Maturity	December 31,
NON-RECOURSE DEBT	Weighted Average Interest Rate	Maturity	2018			2017
Variable Rate:
Bank loans	4.46%	2019 – 2050	$	2,600		$	2,488
Notes and bonds	3.89%	2020 – 2030	821			900
Debt to (or guaranteed by) multilateral, export credit agencies or development banks ⁽¹⁾	3.56%	2023 – 2034	3,292			3,668
Fixed Rate:
Bank loans	4.62%	2019 – 2040	1,684			993
Notes and bonds	5.85%	2019 – 2073	7,346			7,388
Debt to (or guaranteed by) multilateral, export credit agencies or development banks ⁽¹⁾	5.45%	2023 – 2034	246			271
Other	5.87%	2023 – 2061	24			26
Unamortized (discount) premium & debt issuance (costs), net			(368		)	(394		)
Subtotal			$	15,645		$	15,340
Less: Current maturities			(1,659		)	(2,164		)
Noncurrent maturities			$	13,986		$	13,176

The interest rate on variable rate debt represents the total of a variable component that is based on changes in an interest rate index and of a fixed component. The Company has interest rate swaps and option agreements in an aggregate notional principal amount of approximately $3.9 billion on non-recourse debt outstanding at December 31, 2018. These agreements economically fix the variable component of the interest rates on the portion of the variable rate debt being hedged so that the total interest rate on that debt has been fixed at rates ranging from approximately 2.24% to 8.00%.



December 31,	Annual Maturities
2019	$	1,697
2020	1,458
2021	1,601
2022	1,530
2023	1,316
Thereafter	8,411
Unamortized (discount) premium & debt issuance (costs), net	(368		)
Total	$	15,645

As of December 31, 2018, AES subsidiaries with facilities under construction had a total of approximately $811 million of committed but unused credit facilities available to fund construction and other related costs. Excluding these facilities under construction, AES subsidiaries had approximately $1.8 billion in various unused committed credit lines to support their working capital, debt service reserves and other business needs. These credit lines can be used for borrowings, letters of credit, or a combination of these uses.



Subsidiary	Transaction Period	Issuances		Repayments			Gain (Loss) on Extinguishment of Debt
Southland ⁽¹⁾	Q1, Q2, Q3, Q4	$	757	$	—		$	—
Tietê	Q1	385		(231		)	—
Alto Maipo	Q2	104		—			—
DPL	Q2	—		(106		)	(6		)
Gener	Q3	—		(104		)	(7		)
Angamos	Q3	—		(98		)	—
IPALCO	Q4	105		(89		)	—
Total		$	1,351	$	(628	)	$	(13	)

AES Argentina — In February 2017, AES Argentina issued $300 million aggregate principal of unsecured and unsubordinated notes due in 2024. The net proceeds from this issuance were used for the prepayment of $75 million of non-recourse debt related to the construction of the San Nicolas Plant resulting in a gain on extinguishment of debt of approximately $65 million.

Non-Recourse Debt Covenants, Restrictions and Defaults — The terms of the Company's non-recourse debt include certain financial and nonfinancial covenants. These covenants are limited to subsidiary activity and vary among the subsidiaries. These covenants may include, but are not limited to, maintenance of certain reserves and financial ratios, minimum levels of working capital and limitations on incurring additional indebtedness.

As of December 31, 2018 and 2017, approximately $627 million and $642 million, respectively, of restricted cash was maintained in accordance with certain covenants of the non-recourse debt agreements, and these amounts were included within Restricted cash and Debt service reserves and other deposits in the accompanying Consolidated Balance Sheets.

Various lender and governmental provisions restrict the ability of certain of the Company's subsidiaries to transfer their net assets to the Parent Company. Such restricted net assets of subsidiaries amounted to approximately $2.9 billion at December 31, 2018.

The following table summarizes the Company's subsidiary non-recourse debt in default (in millions) as of December 31, 2018. Due to the defaults, these amounts are included in the current portion of non-recourse debt:



	Primary Nature of Default	December 31, 2018
Subsidiary	Primary Nature of Default	Default			Net Assets
AES Puerto Rico	Covenant	$	317		$	139
AES Ilumina (Puerto Rico)	Covenant	34			17
Total		$	351	⁽¹⁾

⁽¹⁾This does not include $483 million of non-recourse debt at Colon, one of the Company’s subsidiaries in Panama, that has been classified as current. Colon is currently in compliance with all provisions of its financing agreements, but does not expect to complete a required contract assignment to the lenders by the March 31, 2019 deadline. The Company is working with the lenders to modify the loan agreement to amend the requirement of this technical covenant in 2019. If this amendment is executed, the debt will be re-classified as noncurrent.

The above defaults are not payment defaults. All of the subsidiary non-recourse defaults were triggered by failure to comply with covenants and/or 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 applicable subsidiary.

The AES Corporation's recourse debt agreements include cross-default clauses that will trigger if a subsidiary or group of subsidiaries for which the non-recourse debt is in default provides more than 20% of the Parent Company's total cash distributions from businesses for the four most recently completed fiscal quarters. As of December 31, 2018, the Company has no defaults which result in or are at risk of triggering a cross-default under the recourse debt of the Parent Company. In the event the Parent Company is not in compliance with the financial covenants of its senior secured revolving credit facility, restricted payments will be limited to regular quarterly shareholder dividends at the then-prevailing rate. Payment defaults and bankruptcy defaults would preclude the making of any restricted payments.



	Interest Rate	Final Maturity	December 31, 2018			December 31, 2017
Senior Unsecured Note	8.00%	2020	$	—		$	228
Senior Unsecured Note	4.00%	2021	500			—
Senior Unsecured Note	7.38%	2021	—			690
Drawings on secured credit facility	LIBOR + 2.00%	2021	—			207
Senior Secured Term Loan	LIBOR + 1.75%	2022	366			521
Senior Unsecured Note	4.88%	2023	713			713
Senior Unsecured Note	4.50%	2023	500			—
Senior Unsecured Note	5.50%	2024	63			738
Senior Unsecured Note	5.50%	2025	544			573
Senior Unsecured Note	6.00%	2026	500			500
Senior Unsecured Note	5.13%	2027	500			500
Unamortized (discount) premium & debt issuance (costs), net			(31		)	(40		)
Subtotal			$	3,655		$	4,630
Less: Current maturities			(5		)	(5		)
Noncurrent maturities			$	3,650		$	4,625



December 31,	Net Principal Amounts Due
2019	$	5
2020	5
2021	505
2022	350
2023	1,213
Thereafter	1,608
Unamortized (discount) premium & debt issuance (costs), net	(31		)
Total recourse debt	$	3,655

In December 2018, the Company prepaid $150 million aggregate principal of its existing senior secured term loan due in 2022. As a result of the transaction, the Company recognized a loss on extinguishment of debt of $1 million.

In March 2018, the Company purchased via tender offers $671 million aggregate principal of its existing 5.50% senior unsecured notes due in 2024 and $29 million of its existing 5.50% senior unsecured notes due in 2025. As a result of these transactions, the Company recognized a loss on extinguishment of debt of $44 million.

In March 2018, the Company issued $500 million aggregate principal of 4.00% senior notes due in 2021 and $500 million of 4.50% senior notes due in 2023. The Company used the proceeds from these issuances to purchase via tender offer in full the $228 million balance of its 8.00% senior notes due in 2020 and the $690 million balance of its 7.375% senior notes due in 2021. As a result of these transactions, the Company recognized a loss on extinguishment of debt of $125 million.

In August 2017, the Company issued $500 million aggregate principal amount of 5.125% senior notes due in 2027. The Company used these proceeds to redeem at par $240 million aggregate principal of its existing LIBOR + 3.00% senior unsecured notes due in 2019 and purchased $217 million of its existing 8.00% senior unsecured notes due in 2020. As a result of the latter transactions, the Company recognized a loss on extinguishment of debt of $36 million.

In May 2017, the Company closed on $525 million aggregate principal LIBOR + 2.00% secured term loan due in 2022. In June 2017, the Company used these proceeds to redeem at par all $517 million aggregate principal of its existing Term Convertible Securities. As a result of the latter transaction, the Company recognized a loss on extinguishment of debt of $6 million.

In March 2017, the Company redeemed via tender offers $276 million aggregate principal of its existing 7.375% senior unsecured notes due in 2021 and $24 million of its existing 8.00% senior unsecured notes due in 2020. As a result of these transactions, the Company recognized a loss on extinguishment of debt of $47 million.

Recourse Debt Covenants and Guarantees — The Company's obligations under the senior secured credit facility and senior secured term loan are, subject to certain exceptions, secured by (i) all of the capital stock of

domestic subsidiaries owned directly by the Company and 65% of the capital stock of certain foreign subsidiaries owned directly or indirectly by the Company; and (ii) certain intercompany receivables, certain intercompany notes and certain intercompany tax sharing agreements.

The senior secured credit facility and senior secured term loan are subject to mandatory prepayment under certain circumstances, including the sale of certain assets. In such a situation, the net cash proceeds from the sale must be applied pro rata to repay the term loan, if any, using 60% of net cash proceeds, reduced to 50% when and if the Parent Company's recourse debt to cash flow ratio is less than 5:1. The lenders have the option to waive their pro rata redemption.

The senior secured credit facility contains customary covenants and restrictions on the Company's ability to engage in certain activities, including, but not limited to, limitations on other indebtedness, liens, investments and guarantees; limitations on restricted payments such as shareholder dividends and equity repurchases; restrictions on mergers and acquisitions, sales of assets, leases, transactions with affiliates and off-balance sheet or derivative arrangements; and other financial reporting requirements.

The senior secured credit facility also contains financial covenants, evaluated quarterly, requiring the Company to maintain a minimum ratio of adjusted operating cash flow to interest charges on recourse debt of 1.3 times and a maximum ratio of recourse debt to adjusted operating cash flow of 7.5 times.

The terms of the Company's senior unsecured notes and senior secured term loan contain certain covenants including limitations on the Company's ability to incur liens or enter into sale and leaseback transactions.