Dynegy, Energy Capital Partners Form JV To Acquire ENGIE's U.S. Fossil Portfolio

(RTTNews) - Dynegy Inc. (DYN) and Energy Capital Partners, through a joint venture, have signed a definitive agreement to acquire ENGIE's U.S. fossil portfolio consisting of 8,731 megawatts of generation capacity for a purchase price of $3.3 billion. Dynegy said the ENGIE U.S. fossil portfolio complements the company's existing assets in PJM and ISO New England, and provides an opportunity to establish a presence in the Texas ERCOT market.

The joint venture, named Atlas Power, is indirectly owned 65 percent by Dynegy and 35 percent by Energy Capital. Dynegy and Energy Capital will invest approximately $770 million and $415 million, respectively in the joint venture.

The joint venture has secured financing for the $3.3 billion acquisition, as well as related transaction fees and working capital, with $2.25 billion in committed debt facilities and $1.185 billion in equity commitments from its owners, which includes transaction fees and initial cash balance.