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Author: schurchill16 Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35362  
Subject: Re: Any updates on Edison Mission Energy bonds? Date: 11/5/2013 6:55 AM
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I've got some Edison kicking around a bit.

I might be adding these numbers up incorrectly.

The articles both state the Aggregate purchase Price is $2.635B. They go on to mention the acquired cash.

Following the math in the RTT article.

$2.635 B
-$1.063 B Acquired Cash
---------
$1.572 B Net Cash/Stock Purchase Price
+$1.272 B Non-Recourse Debt Assumed
---------
$2.844 B Transaction Enterprise Value Cited in RTT Article.

If I understand this correctly, NRG is 'paying' $3.907 B in cash, stock, and debt for the company (which includes $1.063 B in cash).

If the $3.7B Howard mentions in his post is the correct amount of debt (and not debt net of cash), it could be that we're getting full face value. I should know the total amount of debt, but have to admit I haven't followed this one closely. Grabbing $1000 back in May of 2010 for $70.875 and collecting a few coupons before the BK proceedings.

I could be way off, it seems like I might be missing something, but when I add the numbers up and include the $350m in stock discussed in the article, this is the only way they seem to close out.

For my money, I'll just hold on and wait until some money and shares show up in my account.

Scott
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