Dynegy Holdings receives consent to amend 9 7/8% notes, 10 1/8% notes

New York, March 28 - Dynegy Inc. said its wholly owned subsidiary Dynegy Holdings Inc. received the necessary consents to amend its $225 million of second-priority senior secured floating-rate notes due 2008, $625 million of 9 7/8% second-priority senior secured notes due 2010 and $900 million of 10 1/8% second-priority senior secured notes due 2013.

By the consent deadline of 5 p.m. ET on March 28, holders had tendered $150.72 million or 67% of the floaters, $613.75 million or 98.2% of the 9 7/8% notes and $898.305 million or 99.9% of the 10 1/8% notes.

Dynegy said it has executed a supplemental indenture which includes the changes.

At its previous announcement on March 20 Dynegy increased the price on offer for the two series of fixed-rate notes. It said pricing will now be based on a spread of 50 basis points over Treasuries instead of 62.5 basis points previously.

Dynegy announced the tender on March 15.

For each $1,000 principal amount of the floaters, the company said it will pay $1,045.

For each $1,000 principal amount of the 9 7/8% and 10 1/8% notes, Dynegy said it will base its payment on the yield to the first call date of the notes, discounted using the respective Treasury and 62.5 basis points - a spread now reduced to 50 basis points.

Pricing will be determined on March 29.

Dynegy Holdings is soliciting consents for amendments to the notes' indentures to eliminate all of the restrictive covenants, eliminate or modify certain events of default and eliminate or modify related provisions of the indenture as well as the release of liens securing the obligations of the company and guarantors.

Those who tender by the consent deadline of 5 p.m. ET on March 28 will receive a consent payment of $30.00 per $1,000 principal amount of notes.

The offers expire at midnight ET on April 11, unless extended.

The offers and consent solicitations are conditioned upon the receipt of consents from the holders of at least two-thirds of each series of notes and one or more new debt financings of $750 million or more.

The information agent is Global Bondholder Services Corp. (call collect 212 430-3774 or 800 470-4200).

The dealer managers and solicitation agents are Credit Suisse Securities (USA) LLC (call collect 212 538-0652 or 800 820-1653) and Banc of America Securities LLC (call collect 212 847-5834 or 292-0070).

The Houston electricity provider also announced the start of an exchange offer for all of its 4.75% convertible subordinated debentures due 2023.

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