KKR is in negotiations with Franklin Templeton Investments, the leader of the lending group, and the new debt would be valued at a 20 percent to 25 percent discount to the former obligation, the paper said.
On Thursday, Energy Future sold $500 million of senior notes at 10 percent interest and, according to the Post, the purpose of this is to use the rate as a point of reference in working out a debt swap deal with lenders who hold $7 billion in Energy Future loans.
KKR and Franklin Templeton did not immediately respond to emails seeking comment that were sent outside of regular U.S. business hours.
Energy Future, formerly TXU, was loaded with debt when KKR,
(Reporting by Santosh Nadgir)