By Dallas Business Journal

Texas utility company Energy Future Holdings Corp. and its subsidiaries are offering to exchange up to $4.5 billion in debt coming due in 2017 for $500 million in cash and $2.2 billion in new debt that would mature in 2020.

The company, formerly known as TXU Corp., aims to reduce its debt and interest expenses through this process.

Energy Future Holdings said in an SEC filing that it has deals with institution investors holding 52% (or $2.3 billion) of the old debt to participate in the exchange.

The company attempted a similar debt exchange last November, but didnâ¿¿t have agreements in place before announcing the deal.

Energy Future Holdings also reported a $426 million net loss for the second quarter, an increase from a $155 million in the quarter a year ago. Revenue declined 15 percent to $2 billion from $2.3 billion in the year-ago quarter.

The company is owned by affiliates of private equity firms TPG Capital, Kohlberg Kravis Roberts & Co. and Goldman Sachs. Those firms acquired the utility in October 2007 for $48 billion, using heavy debt.

Energy Future Holdings Corp. has $20 billion in debt payments coming due in 2014.

Copyright 2010 American City Business Journals
Copyright 2010