Dynegy funds $830 million debt repurchase

AP News
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Posted: Jan 04, 2010 1:59 PM

Dynegy Inc. said Monday that it has completed funding to buy back $830 million in notes, or 83 percent of its senior unsecured debt due in the next two years.

Shares in the Houston-based power company rose 9 cents, or 5 percent, to $1.90 in afternoon trading.

Dynegy said a subsidiary completed funding on Dec. 31 for the repurchase of $420 million in notes due in 2011 and $410 million due in 2012. Including consent fees, the total cost of the transactions was about $875 million, the company said.

The debt buyback by Dynegy Holdings Inc. had been previously announced. Chief Financial Officer Holli C. Nichols said last month that lowering its debt obligations will likely lessen Dynegy's need to tap capital markets.

BofA Merrill Lynch acted as the exclusive repurchase agent.