Dynegy Completes EquiPower and Brayton Point Acquisitions from Energy Capital Partners
April 01 2015 - 4:02PM
Business Wire
—Allocating $100 million of capital to reduce
equity issued to fund transaction——Synergy target raised to $100
million from $40 million—
Dynegy Inc. (NYSE: DYN), through its wholly owned subsidiary,
has finalized its acquisition of EquiPower Resources Corp. and
Brayton Point Holdings, LLC from Energy Capital Partners (ECP). The
transactions include 10 generating stations, capable of generating
6.3 gigawatts of electricity into the New England and PJM power
markets. The Company now owns nearly 20,000 MW operating in eight
states.
“With the EquiPower and Brayton Point acquisitions, Dynegy has
considerable scale in the PJM and New England markets and diversity
of fuel and revenue streams across the portfolio,” said Dynegy
President and Chief Executive Officer Robert C. Flexon. “New
England and PJM are both attractive, well-functioning markets and
we will benefit from having a more robust presence there.”
Dynegy’s other pending acquisition, of Duke Energy’s commercial
generation and retail assets in the Midwest, has received all
required approvals and is expected to close tomorrow, April 2.
“Planning for the integration of both of these acquisitions has
advanced considerably since our initial expectation of $40 million
in synergies and we now expect to achieve $100 million in
synergies,” Flexon added. “Additionally, after careful evaluation
of Dynegy’s liquidity position, outlook for the business, impact of
higher expected synergies, and current price of common shares, we
have decided to allocate $100 million of capital to reduce the
equity that would have been issued under the original transaction
terms.”
The original acquisition price was $3.45 billion including $3.25
billion of cash and $200 million of common stock, issued to ECP at
closing. On March 30, Dynegy and ECP amended the purchase and sales
agreements to increase cash consideration to $3.35 billion and
reduce the common stock that would have been issued by 50% or
3,460,053 shares, based on the settlement price of $28.90 per
share.
Newly Acquired Generating
Assets
Plant
Location Market
Net Capacity 1
(MW)
Ownership Fuel Brayton
Point2 Somerset, MA ISO-NE
1,493 100% Coal
Dighton Dighton, MA ISO-NE
187 100% Gas
Lake
Road Dayville, CT ISO-NE
856 100% Gas
Masspower
Indian Orchard, MA ISO-NE
280 100% Gas
Milford
Milford, CT ISO-NE 579
100% Gas
Elwood Elwood,
IL PJM 788 50%
Gas
Kincaid Kincaid, IL
PJM 1,108 100% Coal
Liberty Eddystone, PA PJM
600 100% Gas
Richland
Defiance, OH PJM 447
100% Gas
Stryker
Stryker, OH PJM 19 100%
Oil
1 MW ratings are based on winter capacity.2 Brayton Point is
scheduled to be retired on June 1, 2017
About Dynegy
We are committed to leadership in the electricity sector. With
approximately 19,500 megawatts of power generation capacity and two
retail electricity companies, we serve our customers and markets by
providing safe, reliable and economic energy. Homefield Energy and
Dynegy Energy Services are retail electricity providers serving
businesses and residents in Illinois.
Forward-Looking Statement
This press release contains statements reflecting assumptions,
expectations, projections, intentions or beliefs about future
events that are intended as “forward-looking statements”
particularly those statements concerning: the New England and PJM
markets and the anticipated benefits associated with such markets;
the anticipated closing of the acquisition of the Duke Energy
Midwest Generation assets and retail business; and the anticipated
synergies resulting from the acquisitions. Discussion of risks and
uncertainties that could cause actual results to differ materially
from current projections, forecasts, estimates and expectations of
Dynegy is contained in Dynegy’s filings with the Securities and
Exchange Commission (the “SEC”). Specifically, Dynegy makes
reference to, and incorporates herein by reference, the section
entitled “Risk Factors” in its 2014 Form 10-K. In addition to the
risks and uncertainties set forth in Dynegy’s SEC filings, the
forward-looking statements described in this press release could be
affected by, among other things, (i) conditions to the closing of
the Duke Energy Midwest acquisition may not be satisfied timely, or
not at all; (ii) problems may arise in successfully integrating the
Duke Energy, EquiPower and Brayton power facilities into Dynegy’s
current portfolio, which may result in Dynegy not operating as
effectively and efficiently as expected; (iii) Dynegy may be unable
to achieve expected synergies or it may take longer than expected
to achieve such synergies; (iv) any of the transactions may involve
unexpected costs or unexpected liabilities; (v) the industry may be
subject to future regulatory or legislative actions, including
environmental, that could adversely affect Dynegy; and (vi) Dynegy
may be adversely affected by other economic, business, and/or
competitive factors. Any or all of Dynegy’s forward-looking
statements may turn out to be wrong. They can be affected by
inaccurate assumptions or by known or unknown risks, uncertainties
and other factors, many of which are beyond Dynegy’s control.
Dynegy Inc.Media:Micah Hirschfield, 713.767.5800orAnalysts:Andy
Smith, 713.507.6466
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