New Issue: Midwest Generation sells $1 billion 30-year notes to yield 8¾%

By Paul A. Harris

St. Louis, April 15 - Midwest Generation LLC and Midwest Finance Corp. sold $1 billion of 30-year putable second priority senior secured notes (B1/B-) Thursday at par to yield 8¾%, according to a syndicate source.

Price talk was 8¼% to 8½%.

Credit Suisse First Boston, Citigroup, JP Morgan and Lehman Brothers were joint bookrunners on the Rule 144A/Regulation S issue. The co-managers were UBS Investment Bank and KBC.

The notes will become putable at par beginning May 1, 2014.

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 $970 million of termination payments under the Collins Station lease.

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

Issuers:	Midwest Generation LLC and Midwest Finance Corp.
Amount:	$1 billion
Maturity:	May 1, 2034
Security description:	Second priority senior secured notes
Bookrunners:	Credit Suisse First Boston, Citigroup, JP Morgan, Lehman Brothers
Co-managers:	UBS Investment Bank, KBC
Coupon:	8¾%
Price:	Par
Yield:	8¾%
Spread:	440 basis points
Put features:	Putable at par beginning May 1, 2014
Call features:	Callable on or after May 1, 2009 at 104.375, 102.917, 101.458, par on or after May 1, 2012
Equity clawback:	Until May 1, 2007 for up to 35% at 108.750
Pricing date:	April 15
Settlement date:	April 27
Ratings:	Moody's: B1
	Standard & Poor's: B-
Price talk:	8¼%-8½%

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