Dynegy to record $310M charge on LS Power deal

AP News
Posted: Dec 22, 2009 4:25 PM

Power generator Dynegy will record a pretax charge of $310 million in the fourth quarter as part of its deal to sell eight plants plus another under development, according to a regulatory filing Tuesday.

The charges are based on the values of the plants, the value of shares the company received in the transaction and other factors.

Dynegy, based in Houston, announced in August that it was selling the plants, about a quarter of its generation, for about $1 billion and $500 million in stock to LS Power. LS Power, a private New York company, also received a senior unsecured note of $235 million in the transaction.

Dynegy used the money to cut its debt and has said the deal simplified the company's structure.

Dynegy shares were up 1 cents to $1.92 in trading Tuesday afternoon.