TXU ups LBO financing credit facility commitment to $26.1 billion, adds another lead bank

By Sara Rosenberg

New York, July 25 - TXU Corp. revised its leveraged buyout senior secured credit facility commitment letter to provide for an up to $26.1 billion, as opposed to an up to $25.9 billion deal, according to a DEFM14A filed with the Securities and Exchange Commission Wednesday.

In addition, Credit Suisse was added as a lead bank to the credit facility, joining Citigroup, Goldman Sachs, JPMorgan, Lehman Brothers and Morgan Stanley.

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

As was previously disclosed, the company has also received a commitment for $11.25 billion of senior unsecured bridge loans to fund the LBO.

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.

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

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.

A shareholder meeting to vote on the transaction is scheduled for Sept. 7.

TXU is a Dallas-based energy company.

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