Edison subsidiaries price, get required consents for 7.73% notes, 8¾% notes, 13½% notes at early deadline

By Jennifer Chiou

New York, May 1 - Edison International announced the receipt of the necessary consents to amend the indentures of three subsidiaries' notes, including Edison Mission Energy's $600 million of 7.73% senior notes due June 15, 2009, Midwest Generation, LLC's $1 billion of 8¾% second-priority senior secured notes due 2034 and Mission Energy Holding Co.'s $799.957 million of 13½% senior secured notes due 2008.

The Rosemead, Calif., energy company said that the subsidiaries executed supplemental indentures to eliminate substantially all the restrictive covenants, eliminate or modify certain events of default and eliminate or modify related provisions.

As of the consent deadline at 5 p.m. ET on April 30, holders of $587.034 million or 97.84% of the 7.73% notes, $999.8 million or 99.98% of the 8¾% notes and $795.679 million or 99.47% of 13½% notes had tendered their securities.

The offers end at 9 a.m. ET on May 15.

For each $1,000 principal amount, the payout will be $1,051.98 for the 7.73% notes, $1,092.08 for the 13½% notes and $1,106.88 for the 8¾% notes.

For each $1,000 principal amount of 7.73% notes and 13½% notes, the payout was calculated using the sum of $1,000 - the amount payable at maturity - and the interest that would accrue from the last interest payment through the maturity, determined on the basis of a yield equal to the sum of the bid-side yield on the reference Treasury note plus 50 basis points. The reference note is the 4% Treasury due June 15, 2009 for the 7.73% notes and the 5.125% Treasury due June 30, 2008 for the 13½% notes.

For each $1,000 principal amount of 8¾% notes, the payout was calculated using the present value of $1,043.75, the optional redemption price on the earliest redemption date, and the interest that would accrue from the last interest payment through that date, discounted using the bid-side yield on the 3.125% Treasury due April 15, 2009 and 50 bps.

Those who tendered by the consent deadline will receive the $30.00 payment that is included in the payout.

Pricing was set at 2 p.m. ET on April 30.

The offers are conditioned upon tenders from holders of a majority of notes, particularly at least 66 2/3% of the 8¾% notes, as well as one or more new planned debt financings of up to $2.7 billion.

The information agent is D.F. King & Co., Inc. (call collect 212 269-5550 or 800 859-8511). The dealer manager and solicitation agent is Citigroup Global Markets Inc. (call collect 212 723-6106 or 800 558-3745).

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