Simpson Thacher recently represented Energy Future Intermediate Holding Company LLC (“EFIH”) and EFIH Finance Inc., direct, wholly-owned subsidiaries of Energy Future Holdings Corp. (“EFH Corp.”), formerly known as TXU Corp., in their issuance and sale of $350,000,000 aggregate principal amount of 11.750% Senior Secured Second Lien Notes due 2022. The issuers intend to dividend a portion of the net proceeds from the offering to EFH Corp., and EFH Corp. intends to use the funds it receives from EFIH to repay a portion of certain inter-company demand notes. The issuers intend to use the remaining net proceeds for general corporate purposes.
EFH Corp. is a Dallas, Texas-based holding company, which, through EFIH, holds a 100% interest in Oncor Electric Delivery Holdings Company LLC which, in turn, holds approximately 80% of the membership interests in Oncor Electric Delivery Company LLC (“Oncor”). Oncor is a regulated company that provides both transmission and distribution services to retail electric providers that sell electricity to consumers and transmission services to other electricity distribution companies, cooperatives and municipalities. Oncor derives a portion of its revenues from fees for delivery services provided to Texas Competitive Electric Holdings Company LLC, an indirect, wholly-owned subsidiary of EFH Corp. Oncor operates the largest transmission and distribution system in Texas, delivering electricity to approximately three million homes and businesses and operating more than 118,000 miles of transmission and distribution lines. EFH Corp.’s common stock is owned by investment funds affiliated with KKR, TPG Capital and Goldman Sachs. The issuers were also represented by the Dallas, Texas office of Gibson, Dunn & Crutcher LLP.
The Simpson Thacher team for the transaction included Ed Tolley, Kirsten Davis, Paige Fleming and Edward Bontkowski (Capital Markets) and Erik Hepler (Collateral).
Lawyers:
• Edward Bontkowski
• Kirsten L. Davis
• Paige E. Fleming
• Erik W. Hepler
• Edward P. Tolley
Related Practice Areas:
• Corporate
• Banking and Credit
• Capital Markets and Securities
