Dynegy Said to Set Rate on $1.8 Billion of Loans for RefinancingKrista Giovacco
Dynegy Inc., the U.S. independent power producer that exited from bankruptcy protection last year, set the rate it will pay on $1.8 billion of covenant-light loans to refinance debt, according to a person with knowledge of the matter.
A $500 million B-1 slice may pay interest at 3.5 percentage points more than the London interbank offered rate with a 1 percent minimum on the lending benchmark, said the person, who asked not to be identified because the deal is private. The debt, due in 2 years, may be sold at 99.5 cents on the dollar.
An $800 million B-2 portion that comes due in seven years may pay interest at 3.75 percentage points more than Libor with a 1.25 percent minimum, the person said. The piece may be sold at 99 cents on the dollar.
The deal includes a $500 million revolving line of credit that comes due in five years, the person said.
Lenders must let Credit Suisse Group AG, the bank arranging the financing, know by April 10 if they will participate in the deal, the person said.