Edison Mission Energy restructures $1 billion two-part offering, talks notes

By Paul A. Harris

St. Louis, May 18 - Edison Mission Energy restructured its $1 billion two-part offering of senior notes (B1/B) and talked both tranches on Thursday, according market sources.

The company talked a restructured tranche of 10-year bullet notes at the 7¾% area. The notes had previously been marketed with a 12-year maturity and five years of call protection.

Meanwhile the company left unchanged its tranche of seven-year bullet notes and talked the notes at the 7½% area.

Tranche sizes remain to be determined. Pricing is expected on Friday morning.

JP Morgan, Citigroup, Credit Suisse, Merrill Lynch & Co. and Goldman Sachs & Co. are joint bookrunners for the Rule 144A transaction. Lehman Brothers, Deutsche Bank Securities, The Royal Bank of Scotland, UBS Investment Bank and Wedbush Morgan Securities are co-managers.

Proceeds and 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 prospective issuer is an indirect subsidiary of Irvine, Calif., independent power producer Edison Mission Group.

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