Dynegy Energy Partners, the gas pipeline partnership of Dynegy Inc., has boosted its initial public offering by fourteen percent to $200 million and sweetened the dividend on the partnership units by 8.6 percent.
The Texas based partnership now plans to sell 8.7 million common units to new investors for $20 each, plus as many as 1.3 million units to Dynegy, according to an amended filing with the Securities and Exchange Commission. The $200 million total offer is fourteen percent more than the $175 million sale planned earlier, based on 8.75 million units at $20 each.
Dynegy Energy Partners expects to pay quarterly dividends amounting to $1.90 a year per unit, today's filing said. That is up by 8.6 percent from $1.75 proposed in February and April filings. The new dividend represents a yield of nine and a half percent on the $20 IPO unit price, up from 8.8 percent at the smaller dividend.
Dynegy will receive thirteen percent more in the boosted IPO. The sale is part of the energy trader's plan to raise two billion dollars from asset sales to regain its investment-grade credit rating, which was stripped by Moody's Investors Service. The partnership now plans to repay Dynegy $167.2 million, up from $148.3 million in earlier filings.