By Stephanie N. Rotondo
Seattle, June 16 – Dynegy Inc. priced $400 million of three-year 7% tangible equity units at par with a 23.5% threshold appreciation price.
The deal came within talk for a distribution rate of 6.625% to 7.125% and a conversion premium of 22.5% to 27.5%.
Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., MUFG, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc. and SunTrust Robinson Humphrey Inc. were the joint bookrunners for the registered deal.
There is a greenshoe for an additional $60 million units.
The units hold a prepaid stock purchase contract and a senior amortizing note. Upon maturity – July 1, 2019, unless settled earlier at the holder’s option or the company’s election in connection with an acquisition termination redemption – holders will receive between 5.0201 and 6.1996 shares of common stock per purchase contract.
Proceeds will be used to fund a previously announced acquisition of ownership interests in certain North American power generation assets from International Power, SA, an indirect subsidiary of Engie SA, and to pay related fees and expenses.
Dynegy plans to list the units on the New York Stock Exchange under symbol “DYNC.”
Houston-based Dynegy is a producer and marketer of electric energy.
| Issuer: | Dynegy Inc.
|
| Securities: | Tangible equity units
|
| Amount: | $400 million, or 4 million units
|
| Greenshoe: | $60 million, or 600,000 units
|
| Maturity: | July 1, 2019
|
| Coupon: | 7%
|
| Price: | Par of $100
|
| Yield: | 7%
|
| Conversion premium: | 23.5%
|
| Threshold appreciation price: | $19.92
|
| Reference price: | $16.13
|
| Conversion rate: | 5.0201 and 6.1996
|
| Call: | Non-callable
|
| Pricing date: | June 15, after close
|
| Settlement date: | June 21
|
| Bookrunners: | Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., MUFG, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc. and SunTrust Robinson Humphrey Inc.
|
| Distribution: | Off shelf
|
| Expected listing: | NYSE: DYNC
|
| Stock symbol: | NYSE: DYN
|
| Stock price: | $16.13 at close on June 15
|
| Market capitalization: | $1.86 billion
|
| Talk: | 6.625% to 7.125%, up 22.5% to 27.5%
|
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