DPL extends tender offer for $280 million 6½% senior notes due 2016

By Susanna Moon

Chicago, Sept. 17 – DPL Inc. said it extended the tender offer for cash for up to $280 million principal amount of its $430 million outstanding 6½% senior notes due 2016.

The tender offer will now end at 11:59 p.m. ET on Oct. 3, extended from 11:59 p.m. ET on Sept. 30. The tender offer began on Sept. 3.

As of 5 p.m. ET on Sept. 16, investors had tendered $363,791,000 principal amount of the notes.

Tendered notes may be withdrawn by the early tender date.

Pricing will be set at 1 p.m. ET on Sept. 19 using the yield of the bid-side price of the 0.5% Treasury note due Aug. 31, 2016 plus 125 basis points.

The total purchase price will include an early tender premium of $50.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on Sept. 19, the early tender date. The early tender date and pricing date were extended from Sept. 16.

The hypothetical total purchase price was set at $1,094.13 for each $1,000 of notes using a reference yield of 0.528% at 1 p.m. ET on Sept. 2 and a tender offer yield of 1.778%.

Tendered notes may be withdrawn by the early tender date.

DPL made the extensions because the Public Utilities Commission of Ohio (PUCO) set a meeting for 1:30 p.m. ET on Sept. 17, and it may make findings and orders and may consider other matters relating to DPL’s subsidiary, Dayton Power and Light Co., according to a company press release.

The matters include DP&L’s application to separate its generation assets by Jan. 1, 2017 and its application to sell its interest in its East Bend generating facility.

On Sept. 15, Moody’s Investors Service placed DP&L’s Baa1 senior secured long-term debt rating and DPL’s Ba2 senior unsecured long-term debt rating under review for possible downgrade, and DPL said it believes the extensions will give holders time to consider any findings and orders made at the PUCO meeting and the action of Moody’s Investors Service.

Those who tender their notes after the early deadline will receive the total payment less the early premium.

The tender offer is subject to a financing condition and a minimum tender condition.

BofA Merrill Lynch (888 292-0070 or 980 387-3907 collect) is the dealer manager. D.F. King & Co., Inc. (212 269-5550, 800 431-9643 or email dpl@dfking.com) is the information agent and tender agent.

DPL is a Dayton, Ohio-based energy company.

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