Dynegy to Sell Power Plants in $1 Billion Transaction

(Houston, Texas) – Power-generation company Dynegy, Inc. announced today the sale of nine of its power plants to LS Power. In a transformative transaction, Houston-based Dynegy will receive more than $1 billion in cash and 245 million of its Class B shares from its 40 percent shareholder, LS Power. LS Power will receive $235 million principal amount of 7.5 percent senior unsecured notes due 2015. In addition, Dynegy will sell to LS Power 4,788 megawatts of peaking and combined-cycle generation assets, as well as Dynegy’s remaining interest in the Sandy Creek project under construction in Texas. The deal would eliminate Dynegy’s two-class share structure and increase its liquidity.

Dynegy General Counsel Kevin Blodgett and Deputy General Counsel Kent Stephenson were assisted on the deal by an Akin Gump Strauss Hauer & Feld LLP team led by partners Michael E. Dillard and Richard Gittleman.

Founded in 1945, Akin Gump Strauss Hauer & Feld LLP, a leading international law firm, numbers more than 800 lawyers in the United States, Europe, Asia and the Middle East.