Seeking Alpha

Dynegy acquiring power generation assets in two deals worth $6.25B

  • Certain Midwest generation assets are being purchased from Duke Energy (NYSE:DUK) for $2.8B, and others from Energy Capital Partners for $3.45B.
  • In total 12.5 megawatts of coal and gas generation is being acquired, nearly doubling Dynegy's (NYSE:DYN) existing portfolio to almost 26K megawatts.
  • Dynegy has synergy targets of more than $40M per year, $200M in collateral efficiencies, and nearly $500M in present value cash tax savings.
  • 2015 adjusted EBITDA and free cash flow accretion per share is expected to by about 125% and 220%, respectively (assuming both deals close this year).
  • Financing: Roughly $5B in unsecured debt issuance, $1.25B in equity and equity-linked securities, including $200M in stock issued to ECP, and $950M in incremental revolving credit facilities.
  • Conference call at 8:30 ET
  • Source: Press Release
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