Edison Mission Energy tenders for 9 7/8%, 10% notes

New York, May 9 - Edison Mission Group said that its indirect subsidiary Edison Mission Energy has started a cash tender offer and consent solicitation for its $600 million of 9 7/8% senior notes due April 15, 2011 and $400 million of 10% senior notes due Aug. 15, 2008.

Payment per $1,000 principal amount will be based on the remaining payments to maturity, discounted using the comparable Treasury yield plus 75 basis points, minus accrued interest to the payment date. The total includes a $30.00 per $1,000 consent payment that will only be paid to holders who tender with consents by the consent deadline of 5 p.m. ET on May 17.

The tender ends at 5 p.m. ET on June 5.

Pricing will be set on May 19.

Edison Mission will also pay accrued interest up to but excluding the payment date.

The consent solicitation is to amend the note indenture to eliminate substantially all the restrictive covenants, eliminate or modify certain events of default and eliminate or modify related provisions.

The amendments include changes to allow Edison Mission Energy to increase the size of its secured corporate credit facility.

Edison Mission Energy said it intends to replace its existing $98 million secured corporate credit facility with a new secured corporate credit facility providing for $500 million in revolving loan and letter of credit capacity to be used to repay existing debt and/or to provide liquidity and credit support for the hedging and trading activities of Edison Mission Energy and its subsidiaries.

The offer is subject to conditions, including the receipt of consents from the holders of at least a majority of each series of notes and completion of debt financings to raise at least $1 billion.

J.P. Morgan Securities Inc. (212 270-3994 or 800 245-8812) and Citigroup Corporate and Investment Banking (212 723-6106 or 800 558-3745) are dealer managers. D.F. King & Co., Inc. is information agent (212 269-5550 or 800-859 8511).

Edison Mission Group is an Irvine, Calif., independent power producer.

© 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.