New Issue: MSW Energy sells $225 million seven-year notes to yield 7 3/8%

By Paul A. Harris

St. Louis, Nov. 7 - MSW Energy Holdings II LLC and MSW Energy Finance Co. II, Inc. sold $225 million of senior secured notes due Sept. 1, 2010 (Ba2/BB-) at par Friday to yield 7 3/8%, according to a syndicate source.

Price talk was for a yield of 7¼%-7½%.

Credit Suisse First Boston ran the books on the Rule 144A transaction. The co-managers were Goldman, Sachs & Co. and Lehman Brothers.

Proceeds will be used to partially fund CSFB Private Equity's acquisition of United American Energy Holdings Corp., the owner of a 50% interest in American Ref-Fuel Co. LLC.

Issuer:	MSW Energy Holdings II LLC and MSW Energy Finance Co. II, Inc.
Amount:	$225 million
Maturity:	Sept. 1, 2010
Security description:	Senior secured notes
Bookrunner:	Credit Suisse First Boston
Co-managers:	Goldman, Sachs & Co., Lehman Brothers
Coupon:	7 3/8%
Price:	Par
Yield:	7 3/8%
Spread:	340 basis points over 5¾% Treasury due August 2010
Call features:	Callable after Sept. 1, 2007 at 103.688, then 101.844, declining to par on Sept. 1, 2009 and thereafter
Equity clawback:	Until Sept. 1, 2006 at 107.375 for up to 35%
Settlement Date:	Nov. 24, 2003 (T+10)
Ratings:	Moody's: Ba2
	Standard & Poor's BB-
Rule 144A Cusip:	55375UAA2
Price talk:	7¼%-7½%

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