Dynegy Holdings buys $400,000 9 7/8% notes, 10 1/8% notes, floaters in asset sale offer

New York, Nov. 15 - Dynegy Inc. announced that its wholly owned subsidiary Dynegy Holdings Inc. bought $400,000 of its $1.75 billion of second-priority senior secured floating-rate notes due 2008, 9 7/8% second-priority senior secured notes due 2010 and 10 1/8% second-priority senior secured notes due 2013 in its asset sale tender offer.

The offer ended at 5 p.m. ET on Dec. 12.

Holders validly tendering their notes will receive par plus accrued interest up to and including the payment date.

Dynegy Holdings said it expects to pay for tendered notes with net cash proceeds from the recent sale by Dynegy and Dynegy Holdings of their Midstream natural gas business to Targa Resources Inc. and, if necessary, borrowings under a credit facility.

Under the terms of the indenture, excess proceeds from the Midstream sale transaction are $2.39 billion.

Wilmington Trust Co. is the depositary for the offer (302 636-6470).

Dynegy Inc. is a Houston-based electricity provider.

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