Dynegy Inc. (DYN) announced that it has closed its transaction with LS Power. Pursuant to the closing, the transaction has increased Dynegy's strategic and financial flexibility and provided a means for addressing near-term debt maturities. The transaction also transforms Dynegy's stockholder structure into a 100% publicly held company with a diversified base of 13,000 megawatts of core operating assets.
Under the terms of the agreements with LS Power, Dynegy has received aabout $970 million in cash consisting, in part, of the release of $175 million of restricted cash used to support its funding commitment to Sandy Creek and around $200 million for the unsecured senior notes, and 245 million of its Class B shares from LS Power.
In exchange, Dynegy sold to LS Power five peaking and three combined-cycle generation assets, as well as Dynegy's remaining interest in the Sandy Creek project under construction in Texas. LS Power also received $235 million in principal amount of 7.5% senior unsecured notes due 2015.
The remaining 95 million Class B shares held by LS Power have been converted into the same number of Class A shares, representing approximately 15 percent of Dynegy's Class A common stock outstanding.
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