Energy Future’s Debt Climbs After Making Bond’s Coupon Payment

Bonds of Energy Future Holdings Corp. climbed after the electricity provider that’s approaching bankruptcy made a planned coupon payment.

The former TXU Corp.’s $1.23 billion of 15 percent notes due April 2021 rose 1 cent to 23.5 cents on the dollar as of 3:50 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. That’s the highest intraday price since Aug. 20.

Those second-lien securities pay interest four times each year, including Oct. 1, according to an Oct. 8, 2010, regulatory filing. The power generator owed as much as $59 million in interest payments today, according to a Sept. 29 report by debt-researcher CreditSights Inc.

Texas’s largest electricity provider made the coupon payment today as scheduled, according to a person with knowledge of the transaction who asked not to be identified, citing lack of authorization to speak publicly

Adam McGill, a spokesman for the Dallas-based company, declined to comment on the interest payment.

Texas’s largest electricity provider has struggled with its debt load since it was taken private in 2007 by KKR & Co., TPG Capital and Goldman Sachs Capital Partners for a record $48 billion.

Creditors are working on a bankruptcy proposal to cut the company’s $43.6 billion of obligations before it has to make $270 million of coupon payments Nov. 1. Lenders turned down an initial proposal advanced by the company, according to an April 15 regulatory filing.

To contact the reporter on this story: Mary Childs in New York at mchilds5@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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