New York, October 07, 2014 -- Moody's Investors Service today assigned a B3 rating to Dynegy Inc.'s (Dynegy) proposed $5.1 billion senior unsecured notes. The proceeds from these senior unsecured notes along with a $350 million mandatory convertible preferred stock issuance and a $650 millionDynegy stock issuance, both of which were launched yesterday, will be used to finance the $6.25 billion acquisition of 12,400 MW of coal and gas fired generation from Duke Energy Inc and private equity firm Energy Capital Partners. The transaction is expected to close in Q1 2015. At the same time, Moody's raised its rating on Dynegy's existing $800 million term loan and secured revolving credit facility (which will be upsized to $1.425 billion from the current $475 million when the transaction closes) to Ba3 from B1. The upgrade reflects better recovery prospects on the secured debt as it benefits from the addition of $5 billion of unsecured notes to the capital structure. Dynegy's B2 corporate family rating (CFR) and Illinois Power Generating Company's (IPG) B3 CFR are affirmed and the rating outlook for both Dynegy and IPG is stable. The equity and preferred stock offerings have a 15% greenshoe option to them. If exercised, the additional cash will be used to defray advisory, legal and other transaction expenses associated with the acquisitions. In the absence of a greenshoe, cash on Dynegy's balance sheet will be used to pay these expenses.

Vollständigen Artikel bei Moodys lesen