by Brooks Powell, Staff Writer
brooks.powell@texaslawbook.net
February 23, 2012 – For the second time this month, Gibson, Dunn & Crutcher and Simpson Thacher & Bartlett represented Energy Future Intermediate Holding Company and EFIH Finance Inc., both wholly-owned subsidiaries of Energy Future Holdings Corp., in a private offering of debt securities.
The deal announced Thursday is for $350 million of 11.750% senior secured second lien notes due 2022, increased from the amount announced earlier today of $200 million. The previous offering this month was for an additional $800 million, meaning the combined offerings totaled $1.15 billion.
According to Gibson Dunn M&A and capital markets partner Robert Little of Dallas, the sale is in response to lower energy prices, particularly due to the depressed natural gas market.
“EFH continues to take steps, including this offering, that are designed to provide it maximum liquidity flexibility going forward, particularly given the challenges posed by low natural gas prices,” said Little. “They are being opportunistic by going to the markets at this time.”
Gibson Dunn and Simpson Thacher served as co-counsel for the issuer. Shearman & Sterling represented the initial purchasers, a group led by Goldman Sachs.
In-house counsels Andy Wright, Greg Santos and Kelly Frazier represented EFH.
Little led the Gibson Dunn team, assisted by Dallas corporate associates Jonathan Whalen and Rachel Harrison.
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