Dynegy Prices Public Offering For 4 Mln Of Its 7.00% Tangible Equity Units

(RTTNews) - Dynegy Inc. (DYN) Thursday said it has priced its previously announced public offering for 4 million of its 7.00% tangible equity units, with each tangible equity unit having a stated amount of $100 and comprised of a prepaid stock purchase contract and a senior amortizing note due July 1, 2019, each issued by Dynegy.

The underwriters have a 13-day over-allotment option to purchase an additional $60 million of tangible equity units.

Unless settled earlier at the holder's option or the company's election or earlier redeemed by the company in connection with an acquisition termination redemption, each purchase contract will automatically settle on July 1, 2019, and the company will deliver between 5.0201 and 6.1996 shares of common stock per purchase contract, subject to adjustment.

Each amortizing note will have an initial principal amount of $18.9491, will bear interest at a rate of 7.00% per annum and will have a final installment payment date of July 1, 2019.

Dynegy will use the net proceeds from the tangible equity units offering, together with others, to fund the consideration for the previously announced acquisition of ownership interests in certain North American power generation assets from International Power, S.A., and to pay related fees and expenses.