Daily News: April 24, 2013

Dynegy Closes $1.775B in New Credit Facilities

Dynegy announced it has closed $1.775 billion in new credit facilities including $1.3 billion in new senior, secured term loans and a $475 million corporate revolver. The proceeds of the term loans were used, together with cash on hand, to repay existing indebtedness at its Dynegy Power and Dynegy Midwest Generation subsidiaries and fund related transaction fees and expenses.

Credit Suisse, Morgan Stanley, Bank of America Merrill Lynch, Barclays, Deutsche Bank, Goldman Sachs, J.P. Morgan, Royal Bank of Canada and UBS acted as lead arrangers and Union Bank of California acted as co-manager for the term Loan facilities. All are lenders under the revolving credit facility.

The two term loans, totaling $800 million and $500 million, mature in 2020 and are priced at LIBOR plus 300 basis points with a LIBOR floor of one percent. The loans were offered to investors below par with an original issue discount of 99.5. The new 5-year, $475 million revolving credit facility at Dynegy replaces an existing $150 million GasCo revolving credit facility. The interest rate charged on borrowings under the revolver will be LIBOR plus 275 basis points with no LIBOR floor.