Energy Future Holdings Competitive Units (TXU) Enter $4.25 Million in Financing

Energy Future Holdings Corp. announced that Texas Competitive Electric Holdings Company LLC (TCEH) entered into DIP Roll Facilities which provide for up to $4.25 billion in financing.

The DIP Roll Facilities consist of (i) a $750 million senior secured, super-priority revolving credit facility, (ii) a $650 million senior secured, super-priority funded term loan letter of credit facility (Term Loan Letter of Credit Facility), and (iii) a $2.85 billion senior secured, super-priority term loan (Term Loan B Facility)

The DIP Roll Facilities currently constitute a senior secured, super-priority debtor-in-possession facility and, upon a conversion date as defined in the DIP Roll Facilities, will convert to a senior secured exit facility.

The net proceeds from the financing (excluding approximately $215 million in cash returned to TCEH from the letter of credit issuer under the TCEH DIP Credit Facilities) were approximately $3.3 billion. Approximately $2.65 billion of the net proceeds from the Term Loan B Facility were used to repay all amounts outstanding under the TCEH DIP Credit Facilities. The remaining net proceeds from the Term Loan B Facility will be used for general corporate purposes. All of the net proceeds from the Term Loan Letter of Credit Facility were used to fund collateral accounts that backstop the issuances of letters of credit. As of the Closing Date, there were no borrowings outstanding under the Revolving Credit Facility and approximately $585 million of letters of credit issued and outstanding under the Term Loan Letter of Credit Facility.

Lenders included Deutsche Bank AG New York Branch, Barclays Bank PLC, Citigroup Global Markets Inc., Credit Suisse AG, RBC Capital Markets, UBS Securities LLC, and Natixis, New York Branch