Texas Competitive repays intercompany notes with loan amendment

By Sara Rosenberg

New York, April 8 - Texas Competitive Electric Holdings Co. LLC repaid all borrowings outstanding under its note payable to Energy Future Holdings Corp. in connection with its credit facility amendment, according to an 8-K filed with the Securities and Exchange Commission on Friday.

In addition, Energy Future Holdings repaid $770 million of borrowings under an SG&A note in connection with the amendment.

As was previously reported, the credit facility amendment, which was approved by lenders by Thursday's consent deadline, revised the secured debt-to-EBITDA requirement and acknowledged that the intercompany loans from Texas Competitive to Energy Future Holdings comply with the requirement that these loans be made on an "arm's-length" basis and that no excess cash flow mandatory repayments were required for fiscal years 2008, 2009 and 2010.

The secured debt-to-EBITDA ratio is now 8.00 to 1.00 from March 31, 2011 through Dec. 31, 2014, 7.75 to 1.00 at March 31, 2015, 7.50 to 1.00 at June 30, 2015, 7.25 to 1.00 at Sept. 30, 2015, 7.00 to 1.00 at Dec. 31, 2015, 6.50 to 1.00 at March 31, 2016, June 30, 2016, Sept. 30, 2016 and Dec. 31, 2016, and 5.50 to 1.00 thereafter.

Excluded from the secured debt requirement will be up to $1.5 billion of new senior secured first-lien notes if the proceeds are used to repay first-lien term loans and first-lien deposit letter-of-credit loans.

Lenders were offered a 50 basis points amendment fee.

Citigroup Global Markets Inc. is the left lead bank on the transaction.

Texas Competitive is a Dallas-based energy company.

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