Dynegy to price $400 million tangible equity units to yield 6.625%-7.125%, up 22.5%-27.5%

By Rebecca Melvin

New York, June 15 – Dynegy Inc. plans to price $400 million of three-year tangible equity units, or 4,000,000 units at $100.00 each, after the market close on Wednesday, according to a syndicate source.

The registered deal is being talked with a distribution rate of 6.625% to 7.125% and a premium over the threshold appreciation price of 22.5% to 27.5%.

Dynegy is also commencing the syndication of an incremental $2 billion term loan B facility and a revolving credit facility of $75 million.

The units, which mature July 1, 2019, have a $60 million greenshoe and are being sold via joint bookrunners Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Mitsubishi UFJ Securities (USA) Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc. and SunTrust Robinson Humphrey Inc.

Proceeds will be used to fund a previously announced acquisition of ownership interests in certain North American power generation assets from International Power, SA, an indirect subsidiary of Engie SA, and to pay related fees and expenses.

Dynegy plans to list the units on the New York Stock Exchange under symbol DYNC.

Houston-based Dynegy is a producer and marketer of electric energy.

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