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.