Natural gas-fired, coal-fired restructuring completed at Dynegy

Dynegy Inc. (NYSE: DYN) completed an internal restructuring to create separate coal-fired power generation and natural gas-fired power generation units. Dynegy Midwest Generation LLC, the coal business, and Dynegy Power LLC, the gas business unit, closed on new senior secured credit facilities worth $1.7 billion. The facilities consist of a $1.1 billion, five-year senior secured term loan facility for GasCo and a $600 million, five-year senior secured term loan facility for CoalCo.

The financing may be used to repay debts under Dynegy Holding Inc.’s senior secured credit agreement, repay debt related to units of Sithe Energies Inc., make up $400 million of distributions to parent holding companies and fund general working capital and liquidity requirements.

Dynegy said on July 10 it planned to reorganize its operations. Dynegy Power LLC owns and operates eight primarily natural gas-fired combined-cycle and peaking power generation facilities across the West, Midwest and Northeast, totaling 6,771 MW of generating capacity. Dynegy Midwest Generation LLC owns and operates the coal segment, a portfolio of six primarily coal-fired baseload power generation facilities in the Midwest, totaling 3,132 MW of generating capacity. Dynegy's remaining assets (including leasehold interests in the Danskammer and Roseton facilities) constitute the company’s third business segment.

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