TXU $11 billion facility expected as fourth quarter business

By Sara Rosenberg

New York, Sept. 6 - TXU Generation Development Co. LLC's proposed $11 billion credit facility is anticipated to come to market sometime in the fourth quarter, according to a market source.

In addition, a structure on the deal has surfaced with tranching divided into a $2 billion revolver, a $6.5 billion term loan B and a $2.5 billion second-lien term loan, the source said.

Morgan Stanley, Citigroup and Merrill Lynch are the lead banks on the credit facility.

Proceeds will be used to fund the development and construction of 11 lignite/coal-fired generation units in Texas, with a total net capacity estimated at 9,079 MW.

Borrowings under the facility are expected to be nonrecourse to TXU Corp.

TXU Generation is a subsidiary of Dallas-based energy company TXU Corp. that was established for the purpose of developing and constructing the generation facilities.

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