Edison Mission Energy begins roadshow for $1 billion two-part note offering

By Paul A. Harris

St. Louis, May 15 - Edison Mission Energy began a roadshow on Monday for its $1 billion two-part senior note offering (B1/B), according to market sources.

The offering is expected to price late Thursday or early Friday.

The company intends to sell a tranche of seven-year bullet notes and a tranche of 12-year notes that will come with five years of call protection.

Tranche sizes remain to be determined.

JP Morgan, Citigroup, Credit Suisse, Merrill Lynch & Co. and Goldman Sachs & Co. are joint bookrunners. Co-managers are expected to be announced.

Proceeds, together with cash on hand, will be used to fund the tender for $400 million of the company's 10% senior notes due 2008 and $600 million of its 9 7/8% senior notes due 2011.

The company also intends to replace its existing $98 million secured corporate credit facility with a new secured corporate credit facility providing for $500 million revolver 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.

Edison Mission Energy is an indirect subsidiary of Irvine, Calif., independent power producer Edison Mission Group.

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