KKR & Co.’s Energy Future Holdings Corp., formerly known as TXU Corp., is seeking to extend the maturity date on $3.8 billion of first-lien loans that come due October 2014, according to a report by CreditSights Inc.
The debt was quoted at 74.5 cents on the dollar today, up from 69.7 cents on Dec. 6, according to prices compiled by Bloomberg. Energy Future’s $15.4 billion term loan due October 2017 was quoted at 67.6 cents today.
The offer to amend and extend the loan also boosted the price of the Dallas-based energy producer’s unsecured debt by 33 percent, CreditSights analyst Andy DeVries wrote in the note dated yesterday.
Energy Future, which was taken private by KKR, TPG Capital and Goldman Sachs Capital Partners five years ago in the largest leveraged buyout in history, extended the maturities on more than $17.8 billion of loans in April 2011.
The company has posted seven consecutive quarterly losses (TXU:US) and will face a “material restructuring” in the next 12 months, Moody’s Investors Service said in a Dec. 5 report. As its long-term borrowings (TXU:US) soared to $37.4 billion through Sept. 30 from $10.6 billion before the buyout, natural gas prices have plunged about 75 percent from their 2008 peak. The price of electricity in the Texas market is linked to natural gas costs.
Allan Koenig, a spokesman for Energy Future, declined to comment on the report.
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