Dynegy To Buy Assets From Duke Energy And Energy Capital Partners - Quick Facts

(RTTNews) - Dynegy Inc. (DYN) said Friday that it has signed two separate definitive sets of agreements to acquire the ownership interests in certain Midwest generation assets from Duke Energy Corp. (DUK) and EquiPower Resources Corp and Brayton Point Holdings, LLC from Energy Capital Partners or ECP. The Purchase price will be $2.8 billion for Duke assets and $3.45 billion for ECP assets.

The Duke portfolio includes its retail business and ownership interests in the following plants: Killen, Stuart, Conesville, Miami Fort, Zimmer, Hanging Rock, Washington, Fayette, Lee and Dicks Creek.

The ECP assets include these generating facilities: Milford, Lake Road, Dighton, Masspower, Liberty, Elwood, Richland, Stryker, Kincaid and Brayton Point.

Dynegy Inc intends to issue approximately $5 billion in new unsecured bonds and $1.25 billion in equity and equity-linked securities.

Both transactions are expected to close by the end of the first quarter 2015.

For fiscal 2015, Dynegy expects net income attributable to the company to be in the range of $220 million - $375 million and Pro forma consolidated Adjusted EBITDA of $1.2 billion - $1.4 billion and Free Cash Flow of $480 million - $680 million, assuming both transactions close on December 31, 2014.

Separately, Duke Energy announced that it will sell its non-regulated Midwest Commercial Generation Business to Dynegy for $2.8 billion in cash. The deal includes ownership interests in 11 power plants and Duke Energy Retail Sales, the company's competitive retail business in Ohio.

Closing is expected to occur in three to six months.

As a result of this announcement, in the third quarter Duke Energy will recognize an approximate $500 million pre-tax reversal of the $1.4 billion impairment previously recognized in 2014. Use of the proceeds is being evaluated. The transaction is expected to be accretive to shareholders by 2016.