TXU LBO financing to include new credit facility via five banks

By Sara Rosenberg

New York, Feb. 26 - TXU Corp. is planning on getting a new credit facility to help back its leveraged buyout by Kohlberg Kravis Roberts & Co. and Texas Pacific Group, according to a market source.

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

Under the terms of acquisition, TXU shareholders will be offered $69.25 per share. The transaction is valued at $45 billion.

GS Capital Partners, Lehman Brothers, Citigroup and Morgan Stanley intend to be equity investors at closing.

The funding of the transaction will not result in new debt incurred at the regulated utility business.

The transaction is expected to close in the second half of 2007, subject to receipt of shareholder approval and required federal regulatory approvals, as well as satisfaction of other customary closing conditions. There is no financing contingency to the transaction.

TXU is a Dallas-based energy company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.