OREANDA-NEWS. Dynegy Inc. (NYSE:DYN) today announced completion of the pricing and allocation of a seven-year term loan totaling $2 billion, the proceeds of which will be placed into escrow until the closing of the previously announced 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.

“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,” said Clint Freeland, Dynegy executive vice president and chief financial officer.

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.

ABOUT DYNEGY

We are committed to leadership in the electricity sector. With nearly 26,000 megawatts of power generation capacity and two retail electricity companies, Dynegy is capable of supplying 21 million homes with safe, reliable and economic energy. Homefield Energy and Dynegy Energy Services are retail electricity providers serving businesses and residents in Illinois, Ohio, and Pennsylvania.