Dynegy To Save $100 Mln In Interest As Lenders To Reprice And Upsize Term Loan C

(RTTNews) - Electric utility Dynegy Inc. (DYN) Tuesday said it will reprice its $2 billion Term Loan C, which will be incurred in connection with the pending ENGIE portfolio acquisition. The company will also upsize the term loan by $224 million to refinance its existing Term Loan B due in 2020 and extend the maturity in respect thereof.

Dynegy noted that the transaction will reduce the interest rate margin on the term loan by 75 basis points to LIBOR +325 basis points. The LIBOR floor remains at 1.00%.

As a result, the company expects interest savings over the life of the loan, which will mature seven years from the closing of the ENGIE acquisition, to total approximately $100 million. Expected interest savings in 2017 are estimated to be approximately $14 million.

The repricing will close substantially concurrently with, or promptly after, the ENGIE acquisition closing.