Dynegy led the charge for energy names this week coming out with a positive first quarter earnings report. The company's "A" loan marched up from the mid 90s into the 97-977/8 context. Additionally, the "B" loan was said to be trading in the 96 range up from the low 90s. Dynegy reported a net income of $147 million for the first quarter of 2003. The company also completed a three-year re-audit of its books from 1999 through the filing of the 2002 statements.
Early last month, Dynegy revamped the loans for its Dynegy Holdings subsidiary. The deal includes a $1.1 billion revolver, in addition to the $200 million "A" term loan and the $360 million second lien "B" loan. The credit is led by Citigroup, Bank of America and Bank One. "The refinancing provides the flexibility to pursue additional financial restructuring initiatives and the resolution of contingent liabilities. Within reasonable guidelines it allows for bond buybacks and debt exchanges, the settlement or restructuring of tolling agreements and the resolution of pending litigation," Bruce Williamson, Dynegy's president and ceo, noted during the company's conference call last week. Calls to Nick Caruso, Dynegy's cfo, were not returned.