Published on 10/18/2012 in the Prospect News High Yield Daily.
New Issue: Energy Future prices $253 million tap of 6 7/8% secured notes due 2017 at 103.375
By Paul A. Harris
Portland, Ore., Oct. 18 - Energy Future Intermediate Holding Co. LLC and EFIH Finance Inc. priced an upsized $252,714,000 add-on to their 6 7/8% senior secured first lien notes due Aug. 15, 2017 (Caa3/B-/) at 103.375, with a 5.972% yield to worst, on Thursday, according to a syndicate source.
The reoffer price came 12.5 basis points rich to price talk set in the 103.25 area.
Citigroup Global Markets Inc. was the left bookrunner for the quick-to-market deal.
Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
The Dallas-based regulated utility and power generation company, formerly TXU Corp., will use proceeds for general corporate purposes, which may include the payment of dividends to EFH Corp.
Issuer: | Energy Future Intermediate Holding Co. LLC and EFIH Finance Inc.
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Face amount: | $252,714,000
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Proceeds: | $261,243,000
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Maturity: | Aug. 15, 2017
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Security description: | Add-on to 6 7/8% senior secured first-lien notes due Aug. 15, 2017
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Left bookrunner: | Citigroup Global Markets Inc.
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Joint bookrunners: | Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
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Co-manager: | Williams Capital Group LP
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Coupon: | 6 7/8%
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Price: | 103.375
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Yield to worst: | 5.972%
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Spread: | 520 bps
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Call protection: | Non-callable except for make-whole call at Treasuries plus 50 bps until Feb. 15, 2015, then callable at 103.438, callable a year later at 101.719 and finally callable at par on or after Feb. 15, 2017
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Equity clawback: | For up to 35% of issue at 106.875 prior to Feb. 15, 2015
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Change-of-control put: | 101%
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Trade date: | Oct. 18
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Settlement date: | Oct. 23 with accrued interest
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Ratings: | Moody's: Caa3
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| Standard & Poor's: B-
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Distribution: | Rule 144A and Regulation S with registration rights
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Price talk: | 103.25 area
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Marketing: | Quick to market
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Original issue: | $250 million priced at par on Aug. 9, 2012, as part of an overall $800 million two-part transaction that also included a $600 million add-on to existing 11¾% senior secured second-lien notes due March 1, 2022
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Fungibility: | Rule 144A notes will be immediately fungible with the existing 6 7/8% notes due 2017; Regulation S notes will have a temporary Cusip for a 40-day seasoning period
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Total issue size: | $502,714,000
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