Moody's rates Dynegy loan Ba3

Moody's Investors Service said it assigned a Ba3 rating to Dynegy Holdings Inc.'s proposed $600 million senior secured bank facility. The outlook is stable.

The bank facility, which replaces the company' current $400 million revolving credit facility, includes a $400 million three-year revolver and a $200 million six-year synthetic letter-of-credit facility. The facilities are secured by a first priority-lien on substantially all of the company's assets and benefits from a guarantee from parent company Dynegy Inc. and from the majority of its subsidiaries.

The revolver is available for collateral requirements and other letters of credit, capital expenditures and working capital needs. Moody's said it expects that Dynegy Holdings will be in compliance with the financial covenants package included in the agreement.

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