The bank debt under the wider Edison International umbrella was a touch stronger last week after Edison Mission Energy (EME) retired its $275 million loan using proceeds from a senior note offering. The loan was set to expire on Tuesday and the paper was quoted in the low 90s prior to the news. The $345 million of new notes were issued by Sunrise Power Company, which is 50% owned by a subsidiary of EME. The financing provided EME with approximately $151 million in proceeds. A $212 million "B" loan remains under EME's credit facility of which only $125 million is outstanding. This piece expires in September 2004.
Edison Mission Midwest Holdings, a subsidiary of EME, also has $911 million in bank debt coming due in December. This loan was quoted in the 87-89 range, about a point stronger after the paydown at the parent company level. While EME has been in discussions with lenders on how to restructure this debt, no plans have been revealed yet. The bank debt under Mission Energy Holdings, a direct subsidiary of Edison International and parent to EME, was bid up to the 60 level from the high 50s, following the news. A spokesman declined to comment on the trades and financing plans.