DPL Inc., KKR Successfully Complete Strategic Alliance.Business Editors DAYTON, Ohio--(BUSINESS WIRE)--March 13, 2000 DPL (Digital PowerLine) An earlier technology for transmitting a 1 Mbps data signal over electric power lines from Nortel Networks. It was developed in the late 1990s, but later abandoned due to implementation difficulties. See broadband over power lines. Inc (NYSE NYSE See: New York Stock Exchange :DPL), the parent company of The Dayton Power and Light Company, today announced the successful completion of the $550 million investment in the Company by affiliates of Kohlberg Kravis Roberts Kohlberg Kravis Roberts & Co (commonly referred to as KKR) is a New York City-based private equity firm that focuses primarily on late-stage leveraged buyouts. It was founded in 1976 by Jerome Kohlberg, Jr., and cousins Henry Kravis and George R. & Co. (KKR KKR Korringa-Kohn-Rostoker (method) KKR Kohlberg, Kravis & Roberts & Co. KKR Kalkara (postal locality, Malta) KKR Kramers-Kronig Relations KKR Komarappa Gounder Ramalingam (hospital in India) ). DPL is using the proceeds, combined with $425 million of recently completed financing, to continue its planned generation strategy, retire short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. , and repurchase up to 31.6 million DPL common shares. "We welcome KKR to the DPL team. In KKR, we have established a strategic alliance with a very skilled partner," said Mr. Peter Forster, Chairman of DPL. "We believe this long-term relationship will unlock value in new and existing areas of our business and help strengthen the skill sets that DPL has used to build its record of industry-leading performance." Scott Stuart, a KKR partner, commented, "We are pleased to be partnering with DPL's high-quality management team to help the Company grow its generating and distribution businesses. DPL is well positioned for success, particularly as the regional market for electricity is opened up to competition next year. We look forward to working together." The investment includes a combination of voting preferred and trust preferred securities and warrants. The 31.6 million warrants, with an exercise price of $21, represent approximately 19.9% of DPL shares outstanding after completion of the Company's share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. The voting preferred securities carry voting rights for up to 4.9% of DPL's total voting rights. The trust preferred securities have a term of 30 years and carry a dividend rate of 8.5% payable in cash. With the KKR investment, George Roberts and Scott Stuart, KKR partners, will join DPL's Board of Directors. About DPL DPL is a diversified energy company supplying energy and energy services to customers in the Midwest through its subsidiaries, The Dayton Power and Light Company and DPL Energy. Dayton Power and Light Company is a diversified energy company, generating electricity for over 500,000 retail customers and distributing natural gas to more than 300,000 customers in Ohio. About KKR KKR is a private investment firm with offices in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , London and Menlo Park, California Menlo Park is a city in San Mateo County, California in the United States of America. It is located at latitude 37°29' North, longitude 122°9' East. Menlo Park had 30,785 inhabitants as of the 2000 U.S. Census. . This report contains certain forward-looking statements regarding plans and expectations for the future. Investors are cautioned that actual outcomes and results may vary materially from those projected due to various factors beyond the Company's control, including abnormal weather, unusual maintenance or repair requirements, changes in fuel costs, increased competition, regulatory changes and decisions, changes in accounting rules and adverse economic conditions. These risks and uncertainties are further discussed in the Company's Form 10-K for the fiscal year ended December 31, 1999, which has been filed with the Securities and Exchange Commission and is available through the EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. system without charge at its website, www.sec.gov. |
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