Target Of Largest LBO Gets Some Debt Relief

  • Energy Future Holdings swaps $1.6 billion for new debt
  • Agencies cut their ratings on the company
  • 2007 LBO was largest in history

Energy Future Holdings Corp. has bought itself some time by swapping some debt, but the beleaguered utility likely will have more work to do if its private equity backers are ever to recoup their investment.

The company, formerly known as TXU Corp., arranged a private exchange this week with some lenders involving $1.6 billion in unsecured pre-LBO debt and senior unsecured LBO-related debt. Ratings agencies downgraded the company in return; Standard & Poor’s called the ...

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