Dynegy Announces Pricing Of Common Stock, Convertible Preferred Stock Offerings

(RTTNews) - Dynegy Inc. (DYN) priced its previously announced concurrent underwritten public offerings of 22.5 million shares of common stock at $31.00 per share and 4 million shares of mandatory convertible preferred stock with a purchase price and liquidation preference of $100.00 per share.

In addition, the underwriters in each offering have been granted an option to purchase up to 3.375 million additional shares of common stock and up to 600,000 additional shares of mandatory convertible preferred stock.

The common stock offering and the mandatory convertible preferred stock offering are separate public offerings by means of separate prospectus supplements.

Unless converted earlier, each share of mandatory convertible preferred stock will convert automatically on November 1, 2017, into between 2.5806 and 3.2258 shares of Dynegy common stock, subject to customary anti-dilution adjustments.

The net proceeds from the common stock offering and the mandatory convertible preferred stock offering will be about $676.6 million and $388.0 million, respectively, after deducting underwriting discounts and commissions and before estimated offering expenses.

Dynegy expects to use the net proceeds from the offerings to finance a portion of the purchase prices for the previously announced acquisitions of the ownership interests in certain Midwest generation assets from Duke Energy Corp. and ownership interests in EquiPower Resources Corp. and Brayton Point Holdings, LLC from Energy Capital Partners.