Dynegy Completes EquiPower and Brayton Point Acquisition from Energy Capital Partners

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.


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