Edison Mission buys 99.3% of 9 7/8% notes, 92.2% of 10% notes in tender

New York, June 5 - Mission Energy Holding Co.'s subsidiary Edison Mission Energy said it completed its refinancing, including the 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.

Edison Mission bought $595.6 million or 99.3% of the 9 7/8% notes and $368.9 million or 92.2% of the 10% notes.

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

It also closed on a new offering of $1 billion of notes, split between $500 million of 7½% notes due 2013 and $500 million of 7¾% notes due 2016.

At its previous announcement on May 19, Edison Mission said it had sufficient consents to amend the notes being tendered for and entered into supplemental indentures.

The company noted at the time that the supplemental indentures will not become operative until the tendered notes are accepted for purchase.

As of the consent date, Edison Mission had received tenders and consents for $594.527 million or 99.09% of the 9 7/8% notes and $366.566 million or 91.64% of the 10% notes.

Edison Mission also announced pricing for the tender.

For the 9 7/8% notes, the payment will be $1,174.23 per $1,000 principal amount while for the 10% notes the payment is $1,086.75 per $1,000 principal amount. In both cases, the totals include a $30 consent payment that will only be received by those that tendered by the consent deadline.

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.

Payment per $1,000 principal amount was 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 tendered with consents by the consent deadline of 5 p.m. ET on May 17.

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

The offer was 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.

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