By Paul A. Harris
St. Louis, Dec. 17 - Illinois Power Co. upsized to $550 million from $500 million its offering of 11½% first mortgage notes due Dec. 15, 2010 (B3/B) and priced it Tuesday at 97.480 to yield 12%, according to syndicate sources.
Price talk was for a yield in the 12%-12¼% area.
Merrill Lynch & Co. and Credit Suisse First Boston were joint bookrunners.
Proceeds from the Rule 144A deal will be used to refinance debt.
The issuer, a subsidiary of Dynegy Inc., is a Decatur, Ill.-based electric utility.
Issuer: Illinois Power Co.
Amount: $550 million (increased from $500 million)
| Maturity: | Dec. 15, 2010
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| Security description: | First mortgage notes
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| Managers: | Merrill Lynch, Credit Suisse First Boston (joint books)
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| Coupon: | 11½%
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| Price: | 97.480
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| Yield: | 12%
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| Price talk: | 12%-12¼%
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| Spread: | 829 basis points over the eight-year Treasury
|
| Call features: | Callable on Dec. 15, 2006 at 105.75, 102.875, par on Dec. 15, 2008 and thereafter
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| Equity clawback: | Until Dec. 15, 2005 for up to 35% at 111.50
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| Settlement date: | Dec. 20, 2002 (T+3)
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| Ratings: | Moody's: B3
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| Standard & Poor's: B
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| Rule 144A Cusip: | 45209LCK3
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