By Paul A. Harris
St. Louis, May 19 - Edison Mission Energy priced $1 billion of senior notes (B1/B) in two $500 million tranches on Friday, according to an informed source.
The indirect subsidiary of independent power producer Edison Mission Group priced a tranche of seven-year notes at par to yield 7½% and a tranche of 10-year notes at par to yield 7¾%.
The yields on both tranches came on top of price talk.
JP Morgan, Citigroup, Credit Suisse, Merrill Lynch & Co. and Goldman Sachs & Co. were joint bookrunners for the Rule 144A transaction. The co-managers were Lehman Brothers, Deutsche Bank Securities, The Royal Bank of Scotland, UBS Investment Bank and Wedbush Morgan Securities.
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 issuer has headquarters in Irvine, Calif.
| Issuer: | Edison Mission Energy
|
| Amount: | $1 billion
|
| Security description: | Senior notes
|
| Bookrunners: | JP Morgan, Citigroup, Credit Suisse, Merrill Lynch & Co., Goldman Sachs & Co.
|
| Co-managers: | Lehman Brothers, Deutsche Bank Securities, The Royal Bank of Scotland, UBS Investment Bank, Wedbush Morgan Securities
|
| Trade date: | May 19
|
| Settlement date: | June 6
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A
|
|
|
| Seven-year tranche
|
| Amount: | $500 million
|
| Maturity: | June 15, 2013
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 253 bps
|
| Call protection: | Non-callable for life
|
| Price talk: | 7½% area
|
|
|
| 10-year tranche
|
| Amount: | $500 million
|
| Maturity: | June 15, 2016 (maturity decreased from 12 years)
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 272 bps
|
| Call protection: | Non-callable for life (call protection extended from five years)
|
| Price talk: | 7¾% area
|
|
|
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