Firm News

Julie Cohen
Director of Marketing and Communications
212.701.3614
jcohen@cahill.com

Cahill Represents Bank Managers in $26.5 Billion in Credit Facilities for TXU Buyout

Date: 10/10/07

Cahill represented Citigroup Global Markets Inc., Credit Suisse Securities LLC, J.P. Morgan Securities Inc., Lehman Brothers Inc., Morgan Stanley & Co. Incorporated and others in the execution of $26.5 billion in credit facilities to fund the buyout of TXU Corp. by an investor group led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group. The transaction is valued at $45 billion, and is thought to be the biggest leveraged buyout in history to date. 

The credit facilities were comprised of $24.5 billion senior secured credit facilities of Texas Competitive Electric Holdings Company LLC (TCEH) and a $2.0 billion senior secured credit facility of Oncor Electric Delivery Company LLC.

The TCEH facilities were comprised of a senior secured initial  term loan facility in an aggregate principal amount of $16.45 billion, a senior secured delayed draw term loan facility in an aggregate principal amount of $4.1 billion, a senior secured letter of credit facility in an aggregate principal amount of $1.25 billion, a senior secured revolving credit facility in an aggregate principal amount of $2.7 billion and a senior secured cash collateral posting facility.

The Oncor credit facility will be used by Oncor and its subsidiaries for working capital and for other general corporate purposes.

Julie Cohen
Director of Marketing and Communications
212.701.3614
jcohen@cahill.com