Dynegy Reaches Genco Debt Restructure Agreement

By Editors of Power Engineering

Dynegy Inc. has reached a tentative agreement with Illinois Power Generating Company and a group of Genco bondholders to restructure $825 million of debt at Genco.

Key terms include exchanging the debt, issued in 2018, 2020 and 2032 notes, into $210 million of new, seven-year Dynegy Inc. unsecured notes, a $139 million cash consideration which includes a $9 million restructuring support agreement, and 10 million Dynegy Inc. warrants with a strike price of $35 per share.

Additionally, the terms include a simultaneous solicitation of Genco noteholders to achieve either an out-of-court restructuring or a prepackaged chapter 11 filing. Genco will continue to make interest payments on the Genco notes, with payments put against the proposed cash consideration.

Dynegy purchased Genco from Illinois power company Ameren in March 2013.

Last month, Dynegy was named a winning supplier of the Illinois Power Agency’s MISO Zone 4 capacity procurement event.

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