HOUSTON, Texas ― Independent power producer Dynegy Inc said it has bought Dynegy Coal Holdco, the indirect parent of its coal-fueled unit — a division it had recently formed as a part of its debt restructuring process.
The value of Dynegy’s equity stake in Coal Holdco is $1.25 billion, including debt. Dynegy bought the ownership of Coal Holdco from its former direct parent Dynegy Gas Investments.
Dynegy in August completed a $1.7 billion debt restructuring deal and separated its coal-fueled and gas-fueled units to help pay off maturing debt.
The refinancing comprised a $1.1 billion loan to its gas unit, Dynegy Power, and a $600 million loan to its coal unit.
Dynegy was forced to explore refinancing after the third- largest U.S. independent power producer warned it might have to file for bankruptcy under the weight of nearly $5 billion in debt.