This excerpt taken from the DYN 8-K filed Apr 6, 2007.
New Credit Facility
In conjunction with the completion of the Dynegy-LS Power combination, Dynegy Inc.s indirect wholly-owned subsidiary, Dynegy Holdings Inc. (DHI), has completed a new senior secured credit facility that amends, restates and increases its $470 million revolving credit facility to $850 million, increases the existing $200 million term letter of credit facility to $400 million and adds a $70 million term loan. The $850 million revolving credit portion of the facility matures in April 2012. The $400 million term portion of the facility and the $70 million term loan mature in April 2013.
Under the new facility, which generally reflects greater flexibility and more favorable terms than the previous facility, revolving credit loans will bear interest at the relevant Eurodollar rate plus a current ratings-based margin of 150 or the base rate plus a current ratings-based margin of 50 basis points. These margins will decrease upon meeting specified improvements in credit ratings for the facility. The term portion of the facility and the term loan will bear interest at the relevant Eurodollar rate plus a ratings-based margin of 150 basis points or the base rate plus a ratings-based margin of 50 basis points.
Both the revolving credit facility and the term letter of credit facility are available for general corporate purposes and to support activities of certain subsidiaries of Dynegy and DHI, to the extent permitted by the credit facility documentation. As previously noted in the Terms and Conditions section of this news release, the revolving credit facility was used to pay down the $275 million note component of the Dynegy-LS Power combination transaction consideration. In addition, proceeds from the term loan were used rather than entering into $70 million of new Griffith project debt.
In other capital structure changes, Sithe Energies and the LS Power operating portfolio are now included as subsidiaries of DHI, further streamlining the companys overall capital structure.
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