New Issue: Energy Future prices $253 million tap of 6 7/8% secured notes due 2017 at 103.375

By Paul A. Harris

Portland, Ore., Oct. 18 - Energy Future Intermediate Holding Co. LLC and EFIH Finance Inc. priced an upsized $252,714,000 add-on to their 6 7/8% senior secured first lien notes due Aug. 15, 2017 (Caa3/B-/) at 103.375, with a 5.972% yield to worst, on Thursday, according to a syndicate source.

The reoffer price came 12.5 basis points rich to price talk set in the 103.25 area.

Citigroup Global Markets Inc. was the left bookrunner for the quick-to-market deal.

Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.

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.

Issuer:	Energy Future Intermediate Holding Co. LLC and EFIH Finance Inc.
Face amount:	$252,714,000
Proceeds:	$261,243,000
Maturity:	Aug. 15, 2017
Security description:	Add-on to 6 7/8% senior secured first-lien notes due Aug. 15, 2017
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
Co-manager:	Williams Capital Group LP
Coupon:	6 7/8%
Price:	103.375
Yield to worst:	5.972%
Spread:	520 bps
Call protection:	Non-callable except for make-whole call at Treasuries plus 50 bps until Feb. 15, 2015, then callable at 103.438, callable a year later at 101.719 and finally callable at par on or after Feb. 15, 2017
Equity clawback:	For up to 35% of issue at 106.875 prior to Feb. 15, 2015
Change-of-control put:	101%
Trade date:	Oct. 18
Settlement date:	Oct. 23 with accrued interest
Ratings:	Moody's: Caa3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	103.25 area
Marketing:	Quick to market
Original issue:	$250 million priced at par on Aug. 9, 2012, as part of an overall $800 million two-part transaction that also included a $600 million add-on to existing 11¾% senior secured second-lien notes due March 1, 2022
Fungibility:	Rule 144A notes will be immediately fungible with the existing 6 7/8% notes due 2017; Regulation S notes will have a temporary Cusip for a 40-day seasoning period
Total issue size:	$502,714,000

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