| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Dynegy Inc. > News item |
Dynegy launches $6.35 billion bridge loan at Libor plus 450 bps
By Sara Rosenberg
New York, Sept. 8 – Dynegy Inc. held a bank meeting on Monday to launch syndication of its $6.35 billion one-year bridge loan, according to a company presentation.
Pricing on the bridge loan is Libor plus 450 basis points with a 1% Libor floor. The spread will step up by 50 bps every 90 days, subject to a total cap.
Proceeds will be used to help fund two separate definitive sets of agreements to acquire the ownership interests in Midwest generation assets from Duke Energy, and EquiPower Resources Corp. and Brayton Point Holdings LLC from Energy Capital Partners.
Of the total bridge loan amount, $2.8 billion is for the Duke assets and $3.55 billion is for the EquiPower and Brayton transaction.
Commitments are due on Sept. 12, the presentation added.
A market source previously told Prospect News that Morgan Stanley Senior Funding Inc. is the left lead on all financing.
In addition, upon first announcing the acquisitions, Dynegy said that its plan for long-term financing was to issue $4.9 billion to $5.1 billion of unsecured bonds, get $950 million of incremental revolving credit facilities, bringing its total revolver size to $1,425,000,000, issue $1 billion to $1.1 billion of new equity and issue $200 million in common stock to Energy Capital Partners Equity.
Under the agreements, Dynegy is buying 12,500 MW of coal and gas generation from Duke Energy for $2.8 billion, and EquiPower and Brayton from Energy Capital Partners for $3.45 billion.
Pro forma 2015 consolidated adjusted EBITDA will be $1.2 billion to $1.4 billion and free cash flow of $480 million to $680 million, assuming both transactions close on Dec. 31.
Closing is expected by the end of the first quarter in 2015, subject to customary conditions, including approval from the Federal Energy Regulatory Commission and expiration of Hart-Scott-Rodino waiting periods.
Dynegy is a Houston-based energy company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.