TXU prices $475 million convertibles at Libor plus 150 bps, up 65%

New York, July 9 - TXU Corp. priced $475 million floating-rate convertible senior notes due 2033 with a coupon of three-month Libor plus 150 basis points and a 65% initial conversion premium.

The deal came at the cheap end of talk which had put the coupon at three-month Libor plus 100 to 150 basis points with a 65% to 70%% initial conversion premium.

Citigroup, Credit Suisse First Boston and JPMorgan are joint bookrunners of the Rule 144A deal.

The notes convert at a price of $34.5675 subject to a 120% contingent conversion provision.

There is a contingent payment provision and the notes are callable from July 15, 2008 onwards. They are putable on July 15, 2008, 2013, 2018, 2023 and 2028.

The offering has a $65 million greenshoe.

TXU said it expects to lower its cost of borrowings and letters of credit, plus improve liquidity by using proceeds as collateral for a five-year revolving credit facility. Under this facility, loans may be made to repay other debt and letters of credit may be issued for the benefit of TXU and its subsidiaries.

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