Dynegy to launch $1.25 billion credit facility Friday

By Sara Rosenberg

New York, March 1 - Dynegy Holdings Inc. is scheduled to hold a bank meeting on Friday to launch its proposed $1.25 billion senior secured credit facility, according to a market source.

Citigroup and JPMorgan are the lead arrangers on the deal.

The facility consists of a $750 million revolver due April 2012 and a $500 million term letter-of-credit facility due April 2013, the company said in a news release.

Proceeds will be used to refinance the company's existing $470 million revolver and $200 million term letter-of-credit facility, for general corporate purposes and to support activities of certain subsidiaries.

"This new credit facility will create greater financial flexibility for the combined Dynegy/LS Power enterprise," said Bruce A. Williamson, chairman and chief executive officer, in the release.

Closing is targeted for the end of the first quarter.

Dynegy is a Houston-based electric company.

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