Dynegy prices seven-year term loan for acquisition

Dynegy Inc. has announced completion of the pricing and allocation of a seven-year term loan totaling US$2 billion for the acquisition of U.S. fossil generation assets from an indirect subsidiary of ENGIE S.A.

At closing of the acquisition, Dynegy intends to use net proceeds of the term loan together with borrowings under its revolving credit facilities, proceeds from the sale of common equity to Energy Capital Partners, and cash-on-hand, to fund the acquisition and pay related fees and expenses.

The interest rate for the term loan, which matures in 2023, is LIBOR plus 400 basis points with a LIBOR floor of one percent. The loans were offered to investors at an original issue discount of 99.0.

Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Mitsubishi UFJ Securities (USA), Inc., RBC Capital Markets, LLC, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc. and SunTrust Robinson Humphrey, Inc. acted as lead arrangers for the term loan facility.

Clint Freeland, Dynegy executive vice president and chief financial officer said:

“We are very pleased with the successful execution of the term loan B financing which, together with the Tangible Equity Unit closing earlier this week, completes Dynegy’s public market financing requirement for the ENGIE portfolio acquisition”