Texas Competitive to extend about $17.8 billion of loan commitments

By Sara Rosenberg

New York, April 13 - Texas Competitive Electric Holdings Co. LLC received commitments to extend $15.367 billion of its term loans, $1.02 billion of its letter of credit loans and $1.384 billion of its revolver, according to a news release.

The term loan B-1, B-2 and B-3 and deposit letter-of-credit facility debt will be extended by three years to Oct. 10, 2017, and the revolver will be extended by three years to Oct. 10, 2016. The B-1, B-2 and B-3 debt that is extended is being collapsed into one extended term loan tranche.

Non-extended debt consists of $3.812 billion of term loans, $43 million of letter of credit loans and $671 million of revolver commitments.

Pricing on the extended first-lien term loan, letter-of-credit facility and revolver is Libor plus 450 basis points, compared with non-extended pricing of Libor plus 350 bps.

Also, the undrawn fee on the extended revolver is 100 bps, up from 50 bps on the non-extended revolver.

The company is paying an upfront extension fee of 350 bps on extended term loans and extended deposit letter-of-credit loans.

As a condition to the extension, the company must complete a senior secured notes offering to fund pro rata repayments of certain outstanding loans.

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

Texas Competitive is a Dallas-based energy company.

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