Dynegy Completes Internal Restructuring and Closes $1.7B Refinancing

Dynegy DYN today announced that it has completed an internal restructuring to create separate coal-fueled power generation and gas-fueled power generation units and that its new “CoalCo” and “GasCo” subsidiaries have closed on new senior secured credit facilities in the aggregate amount of $1.7 billion, all as previously announced on July 10, 2011. The new facilities consist of a $1.1 billion, five-year senior secured term loan facility available to Dynegy Power and a $600 million, five-year senior secured term loan facility available to Dynegy Midwest Generation. “The completion of our internal restructuring and the successful closing of the new separate credit facilities were designed to facilitate and give us the operational and financial flexibility to be able to seize value whenever the opportunity presents itself” “The completion of our internal restructuring and the successful closing of the new separate credit facilities were designed to facilitate and give us the operational and financial flexibility to be able to seize value whenever the opportunity presents itself,” said Robert C. Flexon, President and Chief Executive Officer of Dynegy. “We will now turn our efforts to determining what additional restructuring steps we can take to improve our overall leverage and to improve stockholder value. I would also like to thank our employees for their continued dedication and hard work in completing these restructuring and refinancing transactions.” The proceeds of borrowings under the new credit facilities have been or may be used to: repay certain outstanding indebtedness under Dynegy Holding Inc.'s senior secured credit agreement, cash collateralize letters of credit and provide cash collateral for existing and future collateral requirements, at the option of Dynegy Power, repay certain debt related to subsidiaries of Sithe Energies, make up to an aggregate of $400 million of distributions to parent holding companies, pay related transaction fees and expenses and fund general working capital and liquidity requirements.