Edison Mission Energy starts roadshow for $2.7 billion notes in three parts

By Paul A. Harris

St. Louis, April 26 - Edison Mission Energy started a roadshow on Thursday for a $2.7 billion three-part offering of senior notes (expected ratings B1/BB-), according to an informed source.

The roadshow is expected to wrap up on Monday, with pricing to follow on Tuesday.

The company plans to sell tranches of notes maturing in 2017 and 2027. The final maturity of the third tranche remains to be determined, according to the source, who added that all three tranches will be non-callable.

Citigroup, Credit Suisse, Deutsche Bank Securities, Goldman Sachs & Co., JP Morgan, Lehman Brothers and Merrill Lynch & Co. are joint bookrunners for the notes, which are being marketed via Rule 144A with registration rights and via Regulation S. RBS Greenwich Capital and UBS Investment Bank are the co-managers.

Proceeds will be used to fund the tender for $600 million of the company's 7.73% senior notes due June 15, 2009 as well as to fund a dividend to its immediate parent, Mission Energy Holding Co. (MEHC), and to fund the tender for MEHC's $799.957 million 13½% senior secured notes due 2008.

In addition proceeds will be used to fund a capital contribution to subsidiary Midwest Generation, LLC (MWG) and to help fund MWG's tender for $1 billion of its 8¾% second-priority senior secured notes due 2034 and to repay MWG's secured term loan.

The Rosemead, Calif.-based electric power generator and distributor is a wholly owned subsidiary of Edison Mission Group.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.