Debt

3 Months Ended

Mar. 31, 2020

Recourse Debt

During the first quarter of 2020, the Company drew $840 million on revolving lines of credit at the Parent Company, of which approximately $250 million was used to enhance our liquidity position due to the uncertain economic conditions surrounding the COVID-19 pandemic and the remaining $590 million was used for other general corporate purposes. As of March 31, 2020, we had approximately $805 million of outstanding indebtedness on the Parent Company credit facility at a weighted average interest rate of 2.77%.

Non-Recourse Debt

During the three months ended March 31, 2020, the Company’s subsidiaries had the following significant debt transactions:

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⁽¹⁾	Issuances relate to the June 2017 long-term non-recourse debt financing to fund the Southland repowering construction projects.

Non-Recourse Debt in Default — The following table summarizes the Company’s subsidiary non-recourse debt in default (in millions) as of March 31, 2020. Due to the defaults, these amounts are included in the current portion of non-recourse debt:



Subsidiary	Primary Nature of Default	Debt in Default		Net Assets
AES Puerto Rico	Covenant	$	278	$	150
AES Ilumina (Puerto Rico)	Covenant	32		64
AES Jordan Solar ⁽¹⁾	Covenant	5		2
Total		$	315

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⁽¹⁾	Classified as current held-for-sale liability on the Condensed Consolidated Balance Sheets.

The above defaults are not payment defaults. In Puerto Rico, the subsidiary non-recourse debt defaults were triggered by failure to comply with covenants or other requirements contained in the non-recourse debt documents due to the bankruptcy of the offtaker.

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 20% or more of the Parent Company’s total cash distributions from businesses for the four most recently completed fiscal quarters. As of March 31, 2020, the Company had no defaults which resulted in, or were 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.

Subsidiary

Transaction Period

Southland ⁽¹⁾