Energy Future issues toggle notes in exchange for five series of notes

By Jennifer Chiou

New York, Dec. 5 - Energy Future Intermediate Holding Co. LLC and EFIH Finance Inc. completed a private debt exchange transaction under which they issued $1.145 billion aggregate principal amount of 11¼%/12¼% senior toggle notes due 2018 in exchange for several series of notes, according to an 8-K filing with the Securities and Exchange Commission.

The exchanged securities included the following securities issued by EFH Corp.:

• Roughly $234 million of the 5.55% series P senior notes due Nov. 15, 2014;

• $510 million of 6½% series Q senior notes due Nov. 15, 2024;

• $453 million of 6.55% series R senior notes due Nov. 15, 2034;

• $94 million of 10 7/8% senior notes due 2017; and

• $313 million of 11¼%/12% senior toggle notes due 2017.

The exchange amount includes accrued interest.

The new notes mature on Dec. 1, 2018. Until June 1, 2016, the issuer may elect to pay interest on the new notes in cash, in kind or a combination of the two.

The filing stated that the interest payment due on June 1, 2013 will be paid 100% in PIK interest.

Energy Future may redeem the notes, in whole or in part, at any time on or after Dec. 1, 2014 at par. Before that time, the issuer may redeem up to 35% of the aggregate principal amount of the new notes from time to time at a redemption price of 111¼% of the aggregate principal amount plus interest.

The filing also said that EFH Corp. and EFIH collectively are permitted to issue up to $250 million of additional debt secured by EFIH's equity interest in Oncor Holdings on a second-priority basis.

Further, Texas Competitive Electric Holdings Company LLC, an indirect wholly owned subsidiary of EFH Corp., is permitted to issue about $1.5 billion of additional debt secured by substantially all of the assets of TCEH and certain of its subsidiaries, of which $750 million can be on a first-priority basis and the remainder on a second-priority basis.

In addition, after taking into account the exchange, EFIH is permitted under its debt agreements to issue up to $400 million of additional senior unsecured debt.

The issuer, formerly TXU Corp., is a Dallas-based regulated utility and power generation company.

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