Energy Future Holdings (TXU)

bankrupt

Energy — KKR / TPG / Goldman Sachs

Deal Terms

Entry Year2007

Entry EV$45B

Entry Multiple10x

Leverage9x

Debt Amount$40.1B

Outcome

Exit Year2014

Risk Metrics

LTV (est.)89%

Debt / EV0.89x

Notes

THE WORST PE DEAL IN HISTORY. $45B LBO — largest ever at the time. $40.1B debt, $8.3B equity. Bet on rising natural gas prices — prices COLLAPSED. Filed Chapter 11 April 2014 ($49.7B in liabilities). KKR/TPG/Goldman lost ~$8B combined. Entire equity wiped out.

Sponsor

KKR & Co.$638B AUM

Hot Potato History

1945→Public Market (TXU Corp)

2007→KKR + TPG + Goldman Sachs($45B)

Bankrupt April 2014. Largest PE-backed bankruptcy in HISTORY at $49.7B in liabilities.