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TXU tenders for convertibles
New York, Sept. 15 - TXU Corp. said it has begun cash tender offers for its equity-linked debt securities and convertible notes.
TXU said the offers are part of the Dallas energy company's debt and capital management program. It said that subject to market conditions and other factors it may buy back additional common stock.
Covered by the tenders are TXU's corporate units, Income Prides and floating-rate convertible senior notes due 2033.
The purchase price for each security will be set at 5 p.m. ET on Oct. 8 using a formula based on the volume weighted average price of TXU's common stock from Sept. 20 through the pricing date. TXU stock closed at $43.68 on Sept. 14.
TXU is offering to buy up to 11.433 million or 99.13% of its $577 million of outstanding corporate units.
It will pay 0.3615 times the weighted average price plus 0.5478 times the weighted average price capped at a $25.00 addition plus a further $10.23. The price is subject to a minimum of $45.97 and a maximum of $52.28 per unit.
TXU is offering to buy up to 8.7 million or 98.86% of its $440 million of outstanding Income Prides.
It will pay 0.6940 times the weighted average price plus $19.15 per Pride, subject to a minimum of $46.43 and a maximum of $52.50.
TXU is offering to buy any and all of its $525.5 million of convertible floaters.
It will pay 23.4324 times the weighted average price plus $417.47 per $1,000 principal amount, subject to a minimum of $1,392.60 and a maximum of $1,597.40.
The floaters are contingently convertible into 28.9289 shares of TXU stock.
The tenders will expire at midnight ET on Oct. 13.
There is no minimum requirement for the tenders.
The dealer-managers are Banc of America Securities LLC (888 583-8900 x2200), Merrill Lynch & Co. (888 654-8637), Goldman, Sachs & Co. (877 686-5059) and UBS Securities LLC (888 722-9555 x4210). D.F. King & Co. Inc. is the information agent (212 269-5550 or 800 714-3312).
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