Dynegy has restructured to create separate coal-fired and gas-fired power generation units.
The troubled Houston-based energy company has split into Dynegy Power LLC, which owns and operates the gas segment—a portfolio of eight primarily natural gas-fired intermediate (combined cycle) and peaking (combustion and steam turbines) power generation facilities (with a capacity of 6,771 MW) across the West, Midwest and Northeast—and Dynegy Midwest Generation LLC, which owns and operates the coal segment. The coal segment is a 3,132-MW portfolio of six primarily coal-fired baseload power generation facilities located in the Midwest.
The company’s remaining assets (including leasehold interests in the Danskammer and Roseton facilities) constitute a third business segment.
The company also said this week its new "CoalCo" and "GasCo" subsidiaries have closed on new senior secured credit facilities worth a total of $1.7 billion. The new facilities consist of a $1.1 billion, five-year senior secured term loan facility available to Dynegy Power, LLC (the "GasCo Facility") and a $600 million, five-year senior secured term loan facility available to Dynegy Midwest Generation, LLC (the "CoalCo Facility").
"The completion of our internal restructuring and the successful closing of the new separate credit facilities were designed to facilitate and give us the operational and financial flexibility to be able to seize value whenever the opportunity presents itself," said Robert C. Flexon, president and CEO of Dynegy.
Flexon said Dynegy’s next step was to determine what additional restructuring steps it can take to improve its overall leverage and improve stockholder value. “I would also like to thank our employees for their continued dedication and hard work in completing these restructuring and refinancing transactions," he said.
Sources: POWERnews, Dynegy