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Dynegy subsidiary opens new $300M credit line

By Associated Press
June 17, 2008 | Comments (0)

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Dynegy Inc., a producer and seller of electricity, said Tuesday its Dynegy Holdings Inc. subsidiary agreed to a new $300 million credit facility.

The credit facility is only available when natural gas prices rise above a certain threshold.

If the credit is utilized, it will add to Dynegy's liquidity to help it meet collateral requirements. Dynegy will have access to $40 million in capacity on the credit line for every $1 that natural gas prices rise about $13 per million British Thermal Units in 2009, with a maximum amount of $300 million available.

Dynegy will pay an interest rate of 3.2 percent on the facility, which will mature March 20, 2010.

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