Paul Hastings Represents Initial Purchasers in $5.1 Billion High Yield Bond Offering For Dynegy Inc.

October 27, 2014

New York, NY- Paul Hastings LLP, a leading global law firm, represented Morgan Stanley & Co. LLC, Barclays Capital Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC and UBS Securities LLC as representatives of the initial purchasers in connection with the offering of $5.1 billion aggregate principal amount of notes issued in the form of units by Dynegy Finance I, Inc. and Dynegy Finance II, Inc., wholly owned subsidiaries of Dynegy Inc., a producer and distributer of electric energy, capacity and ancillary services in key U.S. markets.

This is the largest high-yield deal in the US in 2014, the 10th largest high-yield deal on record, and it is the largest U.S. dollar-only financing completed in 2014.

The offering consisted of $840 million aggregate principal amount of Finance I 6.75% Senior Notes due 2019, $1.26 billion aggregate principal amount of Finance II 6.75% Senior Notes due 2019, $700 million aggregate principal amount of Finance I 7.375% Senior Notes due 2022, $1.05 billion aggregate principal amount of Finance II 7.375% Senior Notes due 2022, $500 million aggregate principal amount of Finance I 7.625% Senior Notes due 2024 and $750 million aggregate principal amount of Finance II 7.625% Senior Notes due 2024.

The offering closed into escrow, and subject to certain conditions, the net proceeds will be used to fund the acquisition of eleven power generation facilities and the retail energy business of Duke Energy Corporation and ten power generation facilities of EquiPower Resources Corp. and Brayton Point Holdings, LLC from Energy Capital Partners. Upon closing both acquisitions, Dynegy Inc. will own nearly 26,000 megawatts of generating capacity nationally.

Leveraged Finance partners Michael Michetti and Michael Chernick led the Paul Hastings team, which also included of counsel Jacob Minas, and associates Joseph Fastiggi, Heidi Spalholz, Mitchell Zuckerman, Molly Vaughan, and Yian Huang.

Paul Hastings is a leading global law firm with a strong presence throughout Asia, Europe, Latin America, and the United States. Through a collaborative approach, entrepreneurial spirit, and commitment to client service, the professionals of Paul Hastings deliver innovative solutions to many of the world’s top financial institutions and Fortune 500 companies.