Dynegy Announces Closing of Tangible Equity Units Offering

HOUSTON--()--Dynegy Inc. (NYSE: DYN) announced today the closing of its public offering for 4,600,000 of its 7.00% tangible equity units, with each tangible equity unit having a stated amount of $100.00 and comprised of a prepaid stock purchase contract and a senior amortizing note due July 1, 2019, each issued by Dynegy. The closing of the offering includes the full exercise by the underwriters of their overallotment option to purchase an additional 600,000 tangible equity units.

Dynegy will use the net proceeds from the tangible equity units offering, together with the borrowings under the Company’s term loan B and revolving credit facilities, the proceeds of Energy Capital Partners’ purchase of $150 million of the Company’s common stock to occur concurrently with the closing of the acquisition and cash on hand, to fund the consideration for the previously announced acquisition of ownership interests in certain North American power generation assets from International Power, S.A., an indirect subsidiary of ENGIE S.A., and to pay related fees and expenses.

Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Mitsubishi UFJ Securities (USA), Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc. and SunTrust Robinson Humphrey, Inc. acted as joint book-running managers for the tangible equity units offering.

The offering of tangible equity units, including the component stock purchase contracts and senior amortizing notes, was made under an effective shelf registration statement on file with the U.S. Securities and Exchange Commission (SEC). The offering was made only by means of a prospectus supplement and the accompanying prospectus. Copies of the prospectus supplement for the offering and the accompanying prospectus may be obtained from Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014, Attention: Prospectus Department or RBC Capital Markets, LLC, Attention: Equity Syndicate, 200 Vesey Street, 8th Floor, New York, New York 10281. The prospectus supplement and accompanying prospectus have been filed with the SEC and are available at the SEC’s website at http://www.sec.gov.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any security, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

ABOUT DYNEGY

We are committed to leadership in the electricity sector. With nearly 26,000 megawatts of power generation capacity and two retail electricity companies, Dynegy is capable of supplying 21 million homes with safe, reliable and economic energy. Homefield Energy and Dynegy Energy Services are retail electricity providers serving businesses and residents in Illinois, Ohio, and Pennsylvania.

FORWARD-LOOKING STATEMENTS

This press release contains statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended as “forward-looking statements,” particularly those statements concerning the anticipated timing and funding of, and ability to close, the acquisition; expected capitalization and funding at the closing of the acquisition; expected synergies and anticipated future financial operating performance; and statements concerning the incorporation of the new assets. Discussion of risks and uncertainties that could cause actual results to differ materially from current projections, forecasts, estimates and expectations of Dynegy is contained in Dynegy’s filings with the SEC. In addition to the risks and uncertainties set forth in Dynegy’s SEC filings, the forward-looking statements described in this press release could be affected by, among other things, (i) Dynegy may be unable to obtain regulatory approvals required for the acquisition or required regulatory approvals may delay the acquisition or result in the imposition of conditions that could have a material adverse effect on Dynegy or cause Dynegy to abandon the acquisition; (ii) conditions to the closing of the acquisition and the related financings may not be satisfied; (iii) Dynegy may be unable to achieve expected synergies or it may take longer than expected to achieve such synergies; (iv) the acquisition may involve unexpected costs or unexpected liabilities; (v) the industry may be subject to future regulatory or legislative actions, including environmental, that could adversely affect Dynegy; and (vi) Dynegy may be adversely affected by other economic, business, and/or competitive factors. Any or all of Dynegy’s forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors, many of which are beyond Dynegy’s control.

Contacts

Dynegy Inc.
Media: Micah Hirschfield, 713.767.5800
or
Analysts: 713.507.6466

Contacts

Dynegy Inc.
Media: Micah Hirschfield, 713.767.5800
or
Analysts: 713.507.6466