Dynegy $1.3 billion credit facility to launch Monday

By Sara Rosenberg

New York, May 6 - Dynegy Inc. is scheduled to launch a $1.3 billion credit facility on Monday, according to a company news release. Banc of America Securities LLC, Citigroup Global Markets Inc., Credit Suisse First Boston, J.P. Morgan Securities Inc. and Lehman Brothers Inc. are the lead arrangers on the deal.

It is anticipated that the new facility will have a term loan component as well as a revolving credit component. The lead arrangers have committed $625 million toward the revolver.

The new facility is intended to replace the company's $1.1 billion revolver, which is scheduled to mature in February 2005. The increased size of the new facility will be used to repay existing higher-cost debt and for general corporate purposes.

"This new credit facility will be another significant milestone in the progress we have made by working collaboratively with our bankers to advance Dynegy's self-restructuring through sound financial strategies," said Bruce A. Williamson, president and chief executive officer, in the release.

"Based on our track record of accomplishments, improved market conditions and the support of a core bank group that wants to be part of Dynegy's future, we expect to secure new, long-term financing with measurable advantages over the company's current $1.1 billion facility, including lower interest costs, greater flexibility and a longer term. Importantly, the new facility will also provide continued liquidity to support our operating businesses."

Dynegy is a Houston energy company.

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