New Issue: Texas Competitive sells upsized $1.75 billion 11½% 9.5-year notes to yield 11 5/8%

By Paul A. Harris

Portland, Ore., April 14 - Texas Competitive Electrical Holdings Co. LLC and TCEH Finance, Inc. priced an upsized $1.75 billion issue of 11½% 9.5-year senior secured notes (B2/CCC/) at 99.295 to yield 11 5/8% on Thursday, according to a market source.

The yield printed in the middle of the 11½% to 11¾% price talk.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities LLC, Goldman Sachs & Co. and Morgan Stanley & Co., Inc. were the joint bookrunners.

The Dallas-based energy company, formerly TXU Energy, plans to use the proceeds to repay bank debt.

Issuer:	Texas Competitive Electrical Holdings Co. LLC and TCEH Finance, Inc.
Face amount:	$1.75 billion, upsized from $1.725 billion
Proceeds:	$1.738 billion (approximate)
Maturity:	Oct. 1, 2020
Securities:	Senior secured notes
Bookrunners:	J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities LLC, Goldman Sachs & Co., Morgan Stanley & Co., Inc.
Coupon:	11½%
Price:	99.295
Yield:	11 5/8%
Spread:	815 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until April 1, 2016, then callable at 105.75
Trade date:	April 14
Settlement date:	April 19
Ratings:	Moody's: B2
	Standard & Poor's: CCC
Distribution:	Rule 144A and Regulation S
Price talk:	11½% to 11¾%
Marketing:	Quick to market

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