Dynegy Bonds Fall on $6.25 Billion Debt-Funded Expansion
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Bonds of Dynegy Inc. tumbled the most in four months after the junk-rated independent power producer announced plans to fund a $6.25 billion expansion with debt less than a year after emerging from bankruptcy.
Dynegy expects to sell $5 billion of new senior notes to help finance the purchase of power plants from Duke Energy Corp. and private-equity firm Energy Capital Partners, the Houston-based company said in a statement today. The acquisition will almost double its generating capacity.