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Energy Future’s Oncor Electric Raises $250 Million in Bond Sale

Oncor Electric Delivery Co., the most profitable unit of the bankrupt power provider Energy Future Holdings Corp., raised $250 million by selling five-year bonds secured by mortgage or property assets.

The 2.15 percent securities yield 55 basis points more than similar-maturity Treasuries and may be rated Baa3 by Moody’s Investors Service, according to data compiled by Bloomberg. Sale proceeds will refinance debt under the company’s revolving line of credit and be used for general corporate purposes, according to a person with knowledge of the offering, who asked not to be identified because the terms are private.

Oncor has $979 million outstanding under the credit line, according to data compiled by Bloomberg. The loan pays interest at a rate of 150 basis points, or 1.5 percentage points, more than the London interbank offered rate.

The Dallas-based company, which provides electricity to more than 3 million homes and businesses, last tapped debt markets in July 2012, raising $1.3 billion in three parts, Bloomberg data show. The $400 million of 4.1 percent, first-lien notes due in 2022 traded April 30 at 105.7 cents on the dollar to yield 3.3 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Energy Future filed for bankruptcy protection April 29 in Wilmington, Delaware, listing $36.4 billion of assets and $49.7 billion of debt. Legal safeguards were put into place to keep Oncor protected during the proceedings.

To contact the reporter on this story: Matt Robinson in New York at

To contact the editors responsible for this story: Shannon D. Harrington at Richard Bravo, John Parry

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