DEBT

Recourse Debt

In February 2014, the Company redeemed in full the $110 million balance of its 7.75% senior unsecured notes due March 2014. On March 7, 2014, the Company issued $750 million aggregate principal amount of 5.50% senior notes due 2024. Concurrent with this offering, the Company redeemed via tender offers $625 million aggregate principal of its existing 8.00% senior unsecured notes due 2017. As a result of the latter transaction, the Company recognized a loss on extinguishment of debt of $132 million that is included in the Condensed Consolidated Statement of Operations.

Non-Recourse Debt

Significant transactions

During the three months ended March 31, 2014, we had the following significant debt transactions at our subsidiaries:


•	Mong Duong drew $143 million under its construction loan facility;


•	Tietê issued new debt of $129 million partially offset by repayments of $52 million;


•	Gener issued new debt of $129 million more than offset by repayments of $149 million.

Debt in default

The following table summarizes the Company’s subsidiary non-recourse debt in default or accelerated as of the period indicated. The debt is classified as current non-recourse debt unless otherwise indicated:



	Primary Nature of Default	March 31, 2014
Subsidiary	Primary Nature of Default	Default Amount		Net Assets
		(in millions)
Maritza	Covenant	$	820	$	743
Kavarna	Covenant	197		91
		$	1,017

In addition to the defaults listed in the table above, discontinued operations at Sonel and Kribi in Cameroon had debt in default of $236 million and $251 million; and net assets of $487 million and $(5) million, respectively as of March 31, 2014. For further information please see Note 16 — Discontinued Operations and Held-for-Sale Businesses.

The above defaults are not payment defaults, but are instead 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 borrower.

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 March 31, 2014, none of the defaults listed above individually or in the aggregate results in a cross-default under the recourse debt of the Company.