UPDATE 2-TXU recommends merger approval; CEO may leave

(Reuters) - TXU in proxy materials filed with the U.S. Securities and
Exchange Commission defended the $69.25-per-share offer from a
group led by Kohlberg Kravis Roberts & Co [KKR.UL] and Texas
Pacific Group [TPG.UL].




The company said the price was a "meaningful" premium to
its stock price and that it would probably not have done better
without the deal, the largest leveraged buyout in history.


Read more at Reuters.com Bonds News

UPDATE 1-TXU recommends merger approval; CEO to leave

(Reuters) - TXU in proxy materials filed with the U.S. Securities and
Exchange Commission set Sept. 7 as the date for shareholders to
vote on the planned takeover, which was announced in February.




TXU agreed to be acquired by a group led by Kohlberg Kravis
Roberts & Co [KKR.UL] and Texas Pacific Group [TPG.UL] for
$69.25 per share in the largest leveraged buyout in history.


Read more at Reuters.com Mergers News

RLPC-Investors mull proposed changes to Boots loan

(Reuters) - The deal will also add an interest cover covenant to the
covenant lite loan to offer additional protection to investors
spooked by a steep sell-off in the debt markets in recent
weeks, sources told Reuters Loan Pricing Corporation.




KKR [KKR.UL] and Boots [AB.UL] Deputy Chairman Stefano
Pessina agreed in April to buy the retailer for 11.1 billion
pounds in Europe's biggest-ever private equity
deal and the first of a FTSE 100 company.


Read more at Reuters.com Mergers News

Alliance Boots Bond Risk Rises as KKR Faces Higher Loan Costs to Fund LBO

(Bloomberg) -- The risk of owning Alliance Boots
Plc's bonds rose on expectations bankers underwriting the
leveraged buyout by Kohlberg Kravis Roberts & Co. will increase
interest margins to raise 9 billion pounds ($18.5 billion).

Credit-default swaps protecting 10 million euros of Boots
debt rose 10,000 euros to a record 420,000 euros today, according
to Societe Generale SA. KKR and bankers led by Deutsche Bank AG
have to close the syndication of the loans today under a
commitment deadline announced July 5. The bankers are likely to
offer improved terms to attract enough investors, said Sonia Van
Dorp, a credit analyst at Societe Generale.


Read more at Bloomberg Bonds News