TXU $475 million convertible floater talked to yield 3-month Libor plus 1.0-1.5%, up 65-70%

By Ronda Fears

Nashville, July 8 - TXU Corp. launched $475 million of 30-year floating rate convertible notes talked to yield three-month Libor plus 1.0% to 1.5% with a 65% to 70%% initial conversion premium.

Citigroup, Credit Suisse First Boston and JPMorgan are joint bookrunners of the Rule 144A deal, which was scheduled to price after the close Wednesday.

The senior unsecured notes will be non-callable for five years, with puts in years five, 10, 15, 20 and 25. And, there will be a 120% contingent conversion trigger.

The issue is expected to be rated Ba1 by Moody's Investors Service and BBB- by Standard & Poor's Corp.

There is a $65 million greenshoe.

TXU said it expects to lower its cost of borrowings and letters of credit, plus improve liquidity by using proceeds as collateral for a five-year revolving credit facility. Under this facility, loans may be made to repay other debt and letters of credit may be issued for the benefit of TXU and its subsidiaries.

TXU shares closed Tuesday down 5 cents or 0.23% to $21.51.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.