New Issue: Texas Genco prices $1.125 billion 10-year notes at par to yield 6 7/8%

By Paul A. Harris

St. Louis, Dec. 8 - Texas Genco LLC priced $1.125 billion of 10-year senior notes (B1/B) at par on Wednesday to yield 6 7/8%, according to market sources.

Price talk was 6 7/8% to 7 1/8%.

Goldman Sachs & Co. had the physical books for the Rule 144A issue. Morgan Stanley, Deutsche Bank Securities and Citigroup were joint bookrunners.

Proceeds will be used to fund the acquisition of Texas Genco by the Blackstone Group, Hellman & Friedman, Kohlberg Kravis Roberts and Texas Pacific Group.

The issuer is a Houston wholesale electric power generator.

Issuer:	Texas Genco LLC
Amount:	$1.125 billion
Maturity:	Dec. 15, 2014
Security description:	Senior notes
Bookrunners:	Goldman Sachs & Co. (physical books), Morgan Stanley, Deutsche Bank Securities, Citigroup (joint books)
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	273 basis points
Call features:	Callable after Dec. 15, 2009 at 103.438, 102.292, 101.146, par on or after Dec. 15, 2012
Trade date:	Dec. 8
Settlement date:	Dec. 14
Ratings:	Moody's: B1
	Standard & Poor's: B
Price talk:	6 7/8%-7 1/8%

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