By Paul A. Harris
St. Louis, Nov. 29 - Texas Competitive Electric Holdings Co. LLC (TCEH) priced $3.75 billion of senior notes (B3/CCC) on Thursday in two tranches, according to an informed source.
The company priced $2 billion of 10¼% eight-year series B cash-pay notes at 95.00 to yield 11.216%.
In addition TCEH priced $1.75 billion of 10½% nine-year payment-in-kind toggle notes at 93.25 to yield 11.747%.
Goldman Sachs & Co., Morgan Stanley, Citigroup, JPMorgan, Credit Suisse and Lehman Brothers were joint bookrunners for the issues, which were marketed via Rule 144A and Regulation S, with registration rights.
The bonds are part of the financing for the leveraged buyout of TXU Corp., a Dallas-based energy company, by Kohlberg Kravis Roberts & Co. and Texas Pacific Group.
| Issuer: | Texas Competitive Electric Holdings Co. LLC
|
| Amount: | $3.75 billion
|
| Bookrunners: | Goldman Sachs, Morgan Stanley, Citigroup, JPMorgan, Credit Suisse, Lehman Brothers
|
| Trade date: | Nov. 29
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
|
|
| Cash-pay notes
|
| Amount: | $2 billion
|
| Maturity: | Nov. 1, 2015
|
| Security description: | Series B senior notes
|
| Coupon: | 10¼%
|
| Price: | 95.00
|
| Yield: | 11.216%
|
| Call protection: | Four years
|
| Settlement date: | Dec. 6 (with accrued interest from Oct. 31, 2007)
|
|
|
| PIK toggle notes
|
| Amount: | $1.75 billion
|
| Maturity: | Nov. 1, 2016
|
| Coupon: | 10½%
|
| Price: | 93.25
|
| Yield: | 11.747%
|
| Spread: | 790 bps
|
| Call protection: | Five years
|
| Settlement date: | Dec. 6
|
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