Energy Future talks $250 million tap of 6 7/8% notes due 2017 at 103.25 area; pricing Thursday

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Oct. 18 - Energy Future Intermediate Holding Co. LLC and EFIH Finance Inc. are planning to price a $250 million add-on to the existing 6 7/8% senior secured first-lien notes due Aug. 15, 2017 (existing ratings Caa3/B-) on Thursday in the area of 103.25, a market source said.

Books closed at 11 a.m. ET.

Citigroup Global Markets Inc. is the left bookrunner, while Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

Williams Capital Group LP is the co-manager for the Rule 144A and Regulation S with registration rights deal.

The notes will be callable on Feb. 15, 2015 at 103.438 and carry an equity clawback for 35% at 106.875 until Feb. 15, 2015 and a 101% poison put.

The Dallas-based regulated utility and power generation company, formerly TXU Corp., will use proceeds for general corporate purposes, which may include the payment of dividends to EFH Corp.

The original $250 million issue priced at par on Aug. 9, 2012 as part of an overall $800 million two-part transaction, which also included a $600 million add-on to Energy Future's existing 11¾% senior secured second-lien notes due March 1, 2022.

The Rule 144A notes will be immediately fungible with the existing 6 7/8% notes due 2017, and the Regulation S notes will have a temporary Cusip for a 40-day seasoning period.

© 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.