Energy Future begins tender offer related to second-lien settlement

By Susanna Moon

Chicago, May 12 - Energy Future Intermediate Holding Co. LLC, a wholly owned subsidiary of Energy Future Holdings Corp., and EFIH Finance Inc. began a tender offer to purchase two series of second-lien notes related to a second-lien settlement.

The tender offer covers the company's $406,392,000 11% senior secured second-lien notes due 2021 and $1.75 billion 11¾% senior secured second-lien notes due 2022.

Under a restructuring support and lock-up agreement, holders of about 35% of the aggregate outstanding principal amount of second-lien notes have agreed to a voluntary settlement for the issuer's obligations under the notes, according to a company press release.

The total purchase price for each $1,000 principal amount will be $1,123.22 for the 11% notes and $1,166.22 for the 11¾% notes tendered by 5 p.m. ET on May 23, the early tender date.

The total amount includes an early participation payment of $50.00 per $1,000 of notes.

Those who tender after the early date will receive per $1,000 principal amount $1,123.22 for the 11% notes and $1,116.22 for the 11¾% notes.

Holders also will receive accrued interest up to but excluding the settlement date.

The tender offer will end at 11:59 p.m. ET on June 6.

In connection with the offer, the issuer expects to obtain new debt financing through the issuance of about $1.9 billion of 8% convertible second-lien subordinated secured DIP financing notes due 2016.

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

A holder that participates in the second-lien settlement will be required to tender all of its second-lien notes. No holder is required to participate in the second-lien settlement, and any holder's participation is voluntary, the company said.

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

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

© 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.