Dynegy lifts cap to $1.25 billion in four-week tender for 6¾% notes

By Susanna Moon

Chicago, Aug. 8 – Dynegy Inc. is now tendering for up to $1.25 billion of its $2.1 billion of 6¾% senior notes due 2019 until 11:59 p.m. ET on Sept. 1.

The tender cap was increased from $1.2 billion, according to a company notice on Tuesday.

All of the other deal terms remain unchanged.

As announced Aug. 7, the total purchase price will be $1,036 for each $1,000 principal amount of notes tendered by the early deadline of 5 p.m. ET on Aug. 18.

The total amount includes an early tender premium of $30.00 per $1,000 of notes tendered by the early date.

Holders who tender after the early deadline will receive $1,006 per $1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date.

Tendered notes may be withdrawn before the early deadline.

Dynegy previously said it reserves the right to modify the tender cap.

The tender is not conditioned upon any minimum amount of notes but is contingent on the issue of notes in a concurrent offering.

The company said it has issued a conditional call to redeem $1.2 billion of notes on Sept. 6 less the amount tendered in the offer, subject to financing. The notes are redeemable at a price of 103.375% of par plus accrued interest.

Goldman Sachs & Co. LLC (800 828-3182 or 212 357-1057) is the dealer manager. D.F. King & Co., Inc. (866 828-6934, 212 269-5550 or dyn@dfking.com) is the information agent and the tender agent.

Dynegy is a Houston-based energy company.

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