Midwest Generation to bring $1 billion in refinancing deal

By Paul A. Harris

St. Louis, April 2 - Midwest Generation LLC is coming to the high-yield market with $1 billion of second priority senior secured notes, according to an informed source.

Credit Suisse First Boston, Citigroup, Lehman Brothers and JP Morgan will be joint bookrunners on the Rule 144A deal.

The company also plans to obtain a $700 million credit facility.

Proceeds will be used to refinance $693 million of debt (plus interest) owed by direct parent, Edison Mission Midwest Holdings Co., which is guaranteed by Midwest Generation and is due in December 2004, and to make about $970 million of termination payments under the Collins Station lease.

The issuer is a Rosemead, Calif.-based subsidiary of Edison Mission Energy.

The timing of the deal and the structure of the notes remain to be determined, according to the source.

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