Search
 

TXU Bond Plunge Reaps $450 Mln Windfall

Company gets better deal on exchange offer after securities sell off on tax disclosure.

By Charles Mead and Mark Chediak, Bloomberg | Updated on December 11, 2012

KKR & Co.’s Energy Future Holdings Corp., struggling to avoid default, is enjoying a $450 million windfall at the expense of bondholders.

Energy Future, formerly called TXU Corp. and taken private by KKR, TPG Capital and Goldman Sachs Capital Partners five years ago in the largest leveraged buyout, exchanged $1.15 billion of new notes last week for old ones with a face value of $1.6 billion. The move came after the old securities tumbled when the firm said in an Oct. 30 regulatory filing that it may be liable for $23 billion of taxable income if it cuts ties to units that default.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.