By Paul A. Harris
Portland, Ore., Feb. 1 - Energy Future Intermediate Holding Co. LLC and EFIH Finance Inc. priced a massively upsized $800 million issue of 10-year senior secured second-lien notes (Caa1/CC/B) at 98.535 to yield 12% on Wednesday, according to a market source.
The yield printed on top of price talk.
Goldman Sachs & Co., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners for the quick-to-market issue, which was doubled in size from $400 million.
Proceeds will be used to pay a dividend to Energy Future Holdings Corp. (EFH), which will use the proceeds to repay a portion of the demand notes payable by EFH to its wholly owned subsidiary Texas Competitive Electric Holdings Co. LLC (TCEH) that have arisen from cash loaned by TCEH to EFH.
The issuing entities are subsidiaries of Energy Futures Holding Corp., a Dallas-based holding company engaged in competitive and regulated energy market activities, primarily in Texas. Its portfolio of competitive businesses consists primarily of TXU Energy, a retail electricity provider.
| Issuer: | Energy Future Intermediate Holding Co. LLC and EFIH Finance Inc.
|
| Face amount: | $800 million, increased from $400 million
|
| Proceeds: | $788.28 million
|
| Maturity: | March 1, 2022
|
| Securities: | Senior secured second-lien notes
|
| Bookrunners: | Goldman Sachs & Co., Citigroup Global Markets, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC
|
| Coupon: | 11¾%
|
| Price: | 98.535
|
| Yield: | 12%
|
| First call: | March 1, 2017 at 105.875
|
| Equity clawback: | 35% at 111.75 until March 1, 2015
|
| Trade date: | Feb. 1
|
| Settlement date: | Feb. 6
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CC
|
| Fitch: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 12% area
|
| Marketing: | Quick to market
|
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