Bloomberg News

Energy Future Bonds Jump Most in Two Months as Payment Due (1)

May 01, 2013

Bonds of a unit of Energy Future Holdings Corp. jumped by the most in more than two months on the same day the electricity provider was required to begin making cash coupon payments on another one of its securities.

Texas Competitive Electric Holdings Co.’s $1.83 billion of 10.25 percent notes due November 2015 rose 2.25 cents to 13.5 cents on the dollar at 9:35 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. That’s the biggest increase since Feb. 11.

Energy Future is required to make a cash interest payment today on Texas Competitive’s $1.75 billion of 10.5 percent, 2016 notes, on which it previously elected to make so-called payment- in-kind disbursements, adding the coupon to the principal rather than paying cash to bondholders.

Energy Future Chief Financial Officer Paul Keglevic said in a Feb. 19 earnings call that the company planned to make the upcoming May coupon payment. Allan Koenig, a spokesman, said today that hadn’t changed. “It’s incorporated in our plans to make it,” he said in a telephone interview.

To contact the reporter on this story: Richard Bravo in New York at rbravo5@bloomberg.net

To contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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