| 2016-10-03 07:05:48|
DYN 07:05 10/03 10/03/16
Dynegy reaches tentative agreement regarding Genco notes restructuring
Dynegy has reached an agreement in principle with Illinois Power Generating Companyand an ad hoc group of Genco bondholders to restructure $825 million in unsecured debt at Genco. The economic terms and proposed implementation steps, which are not binding on any party, were included in an 8-K filing pursuant to non-disclosure agreements previously signed by Dynegy Inc. and members of the Ad Hoc Group which required that all material non-public information provided to the Ad Hoc Group as part of restructuring discussions be publicly disclosed on October 3, 2016. Key terms of the proposed restructuring include: $825 million in existing 2018, 2020 and 2032 Genco notes to be exchanged for: $210 million in new 7-year Dynegy Inc. unsecured notes with terms and covenants consistent with existing Dynegy Inc. unsecured bonds. Pricing on the new notes intended to be consistent with the yield on Dynegy's 2023 unsecured bond at the time of issuance; $139 million cash consideration, including the $9 million restructuring support agreement payment outlined below, funded with existing Illinois Power Holdings cash balances and collateral synergies; 10 million Dynegy Inc. warrants with a 7-year tenor and strike price of $35 per share.