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Dynegy steady to stronger with acquisition news; EquiPower Resources flat on buyout
By Sara Rosenberg
New York, Aug. 22 – Dynegy Inc.’s term loan B-2 was unchanged to higher in the secondary market on Friday after two acquisitions were announced, and EquiPower Resources Corp.’s term loans also held strong on news that it is one of the assets being sold to Dynegy.
Dynegy flat to better
Dynegy’s term loan B-2 was steady to stronger following news that it will buy ownership interests in certain Midwest generation assets from Duke Energy for $2.8 billion and EquiPower Resources and Brayton Point Holdings LLC from Energy Capital Partners for $3.45 billion, according to traders.
One trader had the loan at 99¾ bid, par ¼ offered, up from 99½ bid, par offered, and another trader had the loan unchanged at 99½ bid, par ¼ offered.
The Houston-based energy company’s bonds, however, were down about a point and a half at levels of 96 bid, 96½ offered, another trader remarked.
Funding for the acquisitions are expected to come from the issuance of $4.9 billion to $5.1 billion of unsecured bonds, $1 billion to $1.1 billion of new equity, $200 million of common stock issued to Energy Capital Partners Equity and $950 million of incremental revolver capacity that will bring the company’s total revolver size to $1,425,000,000.
Morgan Stanley Senior Funding Inc. is the left lead on all financing, a market source added.
Closing is expected by the end of the first quarter in 2015, subject to customary conditions, including approval from the Federal Energy Regulatory Commission and expiration of Hart-Scott-Rodino waiting periods.
EquiPower holds steady
EquiPower’s term loan B and term loan C debt was also flat on the day, even with the news that it is being purchased by Dynegy, a trader remarked.
One trader had the term loans quoted at 99 3/8 bid, par 3/8 offered, and another trader had the loans quoted at 99 7/8 bid, par ¼ offered, with both traders claiming the loans were unchanged from prior levels.
EquiPower is a Hartford, Conn.-based competitive power generation company.
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