Energy Future: 43% of second-lien notes tendered as of early deadline

By Marisa Wong

Madison, Wis., June 13 – Energy Future Intermediate Holding Co. LLC, a wholly owned subsidiary of Energy Future Holdings Corp., and EFIH Finance Inc. announced the early results of the tender offer for two series of notes related to Energy Future’s second-lien settlement.

As of June 11, the early participation date, holders of $235,851,000, or 58%, of the $406,392,000 outstanding 11% senior secured second-lien notes due 2021 and $686,573,000, or 39%, of the $1.75 billion outstanding 11¾% senior secured second-lien notes due 2022 agreed to participate in the second-lien settlement.

The early participation deadline was previously May 30 and, before that, May 23.

The tender offer will end at 5 p.m. ET on July 3, previously extended from 11:59 p.m. ET on June 6.

As reported on June 9, the companies had amended the tender offer.

The terms of the second-lien settlement were amended so that the tender payment and the total purchase price will no longer be cut $0.14 per day for each day the settlement date occurs after the assumed settlement date of July 9, according to a prior press release.

The company said it also deleted and amended some of the conditions to the completion of the second-lien settlement.

The total purchase price for each $1,000 principal amount will be $1,119.30 for the 11% notes and $1,162.30 for the 11¾% notes.

The total amounts include an early tender payment of $50.00 per $1,000 of notes tendered by the early deadline.

The company originally said the total purchase price would be $1,123.22 for the 11% notes and $1,166.22 for the 11¾% notes.

Holders also will receive accrued interest.

Those who tender after the early deadline will receive the total amount less the early premium.

The completion of the second-lien settlement requires the bankruptcy court’s approval of the incurrence of debt and granting of second-priority priming liens relating to the second-lien DIP notes financing and the second-lien settlement.

The company previously said the completion of the second-lien settlement was subject to the closing of new debt financing through the issue of about $1.9 billion of 8% convertible second-lien subordinated secured DIP financing notes due 2016. That debt financing condition has since been dropped.

Epiq Systems (646 282-2500 or 866 734-9393, or by email at tabulation@epiqsystems.com) is the agent and depositary agent.

Energy Future, a Dallas-based power generation company and utility operator, filed bankruptcy on April 29 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 14-10979.

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