Dynegy Holdings gets tenders for 67% of floaters, 98.2% of 9 7/8% notes, 100% of 10 1/8% notes

By Jennifer Chiou

New York, April 12 - Dynegy Inc. said its wholly owned subsidiary Dynegy Holdings Inc. received tenders for $150.72 million of its $225 million of second-priority senior secured floating-rate notes due 2008, $614 million of its $625 million of 9 7/8% second-priority senior secured notes due 2010 and $899.6 million of its $900 million of 10 1/8% second-priority senior secured notes due 2013.

The company obtained tenders for 67% of the floaters, 98.2% of the 9 7/8% notes and 100% of the 10 1/8% notes.

The offers expired at midnight ET on April 11.

The company said it used cash on hand and the proceeds of a $750 million offering of 8 3/8% senior unsecured notes due 2016 to fund the offers.

For each $1,000 principal amount of 9 7/8% notes, the company said it will pay $1,099.83, which includes the consent payment of $30.00 for those who tendered before the consent deadline of 5 p.m. ET on March 28. The reference yield was 4.894%.

For each $1,000 principal amount of 10 1/8% notes, the company said it will pay $1,145.70, which also includes the $30.00 consent payment. The reference yield was 4.824%.

For each $1,000 principal amount of the floaters, the company said it will pay $1,045.

For each $1,000 principal amount of the 9 7/8% and 10 1/8% notes, Dynegy said it based its payment on the yield to the first call date of the notes, discounted using the respective Treasury and 50 basis points.

At a previous announcement on March 20, Dynegy increased the price on offer for the two series of fixed-rate notes. It said pricing will now be based on a spread of 50 bps over Treasuries instead of 62.5 bps previously.

Pricing was determined at 10 a.m. ET on March 29.

On March 28, the company said it received the necessary consents to amend the notes' indentures.

By the consent deadline, holders had tendered $150.72 million or 67% of the floaters, $613.75 million or 98.2% of the 9 7/8% notes and $898.305 million or 99.9% of the 10 1/8% notes.

Dynegy said it executed a supplemental indenture which includes the changes.

The company announced the tender on March 15.

Dynegy Holdings solicited consents for amendments to the notes' indentures to eliminate all of the restrictive covenants, eliminate or modify certain events of default and eliminate or modify related provisions of the indenture as well as the release of liens securing the obligations of the company and guarantors.

The offers and consent solicitations were conditioned upon the receipt of consents from the holders of at least two-thirds of each series of notes and one or more new debt financings of $750 million or more.

The information agent is Global Bondholder Services Corp. (call collect 212 430-3774 or 800 470-4200).

The dealer managers and solicitation agents are Credit Suisse Securities (USA) LLC (call collect 212 538-0652 or 800 820-1653) and Banc of America Securities LLC (call collect 212 847-5834 or 292-0070).

The Houston-based company is an electricity provider.

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