I can't make AppleScript create a file with a custom name

I want to make application "TextEdit" create a file in Desktop folder. However it doesn't compile with a constant error message popping up. The script:

tell application "TextEdit"

make new document named "Personal letter" at desktop ¬

with properties {text:"Dear NAME_PLACEHOLDER,

You're invited to join us in the office on Monday for pizza"}

end tell

Tried to change "desktop" to the full reference (folder "Desktop" of folder user_name etc) - no difference.

tellaWhat am I doing wrong?