TXU up to $24.5 billion facility expected to launch next week

By Sara Rosenberg

New York, Oct. 9 - TXU Corp. is anticipated to hold a bank meeting during the week of Oct. 15 to launch its proposed up to $24.5 billion senior secured credit facility, according to a market source.

A specific day for the bank meeting is not yet available, the source added.

Citigroup, Credit Suisse, JPMorgan, Goldman Sachs, Lehman Brothers and Morgan Stanley are the lead banks on the deal.

The facility consists of an up to $16.45 billion term loan, an up to $4.1 billion delayed-draw term loan, an up to $1.25 billion letter-of-credit facility and an up to $2.7 revolver, according to an 8-K recently filed with the Securities and Exchange Commission.

In addition, the company will get a senior secured cash collateral posting facility, the size of which will be capped by the mark-to-market exposure of subsidiary Texas Competitive Electric Holdings Co. and its subsidiaries on a portfolio of commodity swaps and futures transactions.

Proceeds will be used to help fund the leveraged buyout of the company by an investor group led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group for $69.25 per share. The transaction is valued at $45 billion.

Other LBO financing will come from up to $4.5 billion of unsecured bridge loans at TXU and up to $6.75 billion of senior unsecured bridge.

The company also received commitments for a receivables facility at TXU Receivables Co. and a $2 billion revolver at Oncor Electric Delivery Co.

TXU is a Dallas-based energy company.

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