Energy Future tenders for two series related to first-lien settlement

By Susanna Moon

Chicago, May 7 - Energy Future Intermediate Holding Co. LLC, a wholly owned subsidiary of Energy Future Holdings Corp., and EFIH Finance Inc. began a tender offer for two series of notes related to its first-lien settlement.

The tender offer covers the company's $502,714,000 of 6 7/8% senior secured notes due 2017 and its $3,482,106,000 of 10% senior secured notes due 2020.

The total purchase price will be $1,050 for each $1,000 principal amount of each series of notes tendered by 5 p.m. ET on May 19, the early tender date.

The total amount includes an early tender payment of $17.50 per $1,000 of notes.

Those who tender after the early deadline will receive the total amount less the early premium.

Under a restructuring support and lock-up agreement, holders of about 32% of the aggregate outstanding principal amount of the first-lien notes have agreed to the terms of the settlement, according to a company press release.

The tender offer will end at 5 p.m. ET on June 6.

The company also will pay accrued interest through the issuance of additional first-lien DIP loans in an aggregate principal amount equal to 101% of the accrued interest up to but excluding the closing date at the non-default rate on first-lien notes accepted for exchange in the offer, the release noted.

The company said that in no event will the payment in the offer be adjusted in any manner to take into account the actual amount of any original issue discount that is applicable in connection with syndication of the DIP loans and the closing of the DIP facility.

The completion of the first-lien settlement is conditioned on the closing of the DIP facility. The first-lien settlement also requires approval by the bankruptcy court.

A holder who participates in the first-lien settlement will be required to tender all of the first-lien notes. No holder is required to participate in the first-lien settlement, and any holder's participation is voluntary. The first-lien settlement is not conditioned on participation by holders of any minimum principal amount of first-lien notes.

Epiq Systems (646 282-2500 or 866 734-9393, or by email at tabulation@epiqsystems.com) is the agent and depositary agent.

Energy Future, a Dallas-based power generation company and utility operator.

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