Dynegy swaps $297 million of new 8 3/8% notes for Sithe debt

By Angela McDaniels

Seattle, July 24 - Dynegy Inc. said its subsidiary Dynegy Holdings Inc. exchanged $297 million of 8 3/8% senior unsecured notes due 2016 for all $419 million of the subordinated debt and accrued interest of indirect Dynegy subsidiary Sithe/Independence Power Partners LP in a private offering.

The transaction reduced Dynegy's total principal amount of debt by about $120 million and will further streamline its capital structure, according to company news release.

The company expects to record a $40 million accounting charge in the third quarter in connection with the exchange, which will be accretive to cash flow beginning in 2006 and accretive to earnings beginning in 2007.

Dynegy is a Houston-based electricity provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.