New Issue: MSW Energy $200 million 10-year notes yield 8½%

By Paul A. Harris

St. Louis, June 11 - MSW Energy Holdings LLC and MSW Energy Finance Co., Inc. sold $200 million of senior secured notes due Sept. 1, 2010 (Ba1/BB) at par Wednesday to yield 8½%, according to an informed source.

Price talk was for a yield of 8¾%-9%.

Credit Suisse First Boston was the bookrunner for the Rule 144A deal.

Proceeds from will be used to fund MSW's acquisition of a 50% stake in Duke/UAE Ref-fuel.

Issuer:	MSW Energy Holdings LLC/MSW Energy Finance Co., Inc.
Amount:	$200 million
Maturity:	Sept. 1, 2010
Security description:	Senior secured notes
Bookrunner:	Credit Suisse First Boston
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	578 basis points over 5¾%% Treasury due August 2010
Call features:	Make-whole at Treasuries plus 50 basis points until Sept. 1, 2007, then at 104.250, 102.125, declining to par on Sept. 1, 2009 and thereafter
Equity clawback:	Until Sept. 1, 2006 at 108.50 for up to 35%
Settlement date:	June 25, 2003 (T+10)
Ratings:	Moody's: Ba1
	Standard & Poor's: BB
Rule 144A Cusip:	55375TAA5

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