Energy Future to use PIK feature on toggle notes for November payment

By Jennifer Chiou

New York, Oct. 29 - Energy Future Holdings Corp. made its May interest payment using the pay-in-kind feature of its 111/4/12% senior toggle notes due 2017 and will do the same for the November payment, according to a 10-Q filed with the Securities and Exchange Commission.

Because of this option, the interest rate will be 12%.

The company said that it increased the total principal amount of the notes by $162 million in May and will further increase the principal by $32 million in November 2010, excluding $130 million of notes to be issued to Energy Future Intermediate Holding Co. LLC as holder of $2.166 billion of the toggle notes.

Similarly, Texas Competitive Electric Holdings Co. LLC made its May interest payment and will also make its November payment on its toggle notes using the same feature, lifting the interest to 11¼% from 10½%. This raised the principal amount of notes by roughly $110 million in May and will further increase the amount $102 million in November.

Energy Future is a Dallas-based holding company engaged in competitive and regulated energy market activities, primarily in Texas.

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