TXU LBO financing commitment calls for $25.9 billion credit facility, $11.25 billion bridge loans

By Sara Rosenberg

New York, June 14 - TXU Corp.'s leveraged buyout financing commitment provides for an up to $25.9 billion senior secured credit facility and up to $11.25 billion of senior unsecured bridge loans, according to a PREM14A filed with the Securities and Exchange Commission Thursday.

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

The credit facility will consist of term loans, a revolver, a synthetic letter-of-credit facility and an unsecured revolver.

The company is being bought by Kohlberg Kravis Roberts & Co. and Texas Pacific Group for $69.25 per share. The transaction is valued at $45 billion.

Of the total debt commitment amounts, about $24.6 billion is expected to be funded at close.

Other financing will come from up to $8 billion in equity.

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.

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