DPL Inc. Announces Debt Reduction and Refinancing Plan.DAYTON, Ohio Dayton is a city in southwestern Ohio, United States. It is the county seat and largest city of Montgomery County. As of the 2005 census estimate, the population of Dayton was 158,873. -- 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) announced today that it has commenced a debt reduction strategy using the proceeds from the sale of its private equity portfolio and is in the process of refinancing Refinancing An extension and/or increase in amount of existing debt. its pollution control debt obligations. As of June 20, 2005, DPL had received cash in excess of $816 million from the sale of the private equity funds. In addition, since June 30, 2004, DPL has received distributions from the funds of approximately $191 million. "With the proceeds in hand, we continue to execute on our stated goals of strengthening our financial position, improving our financial flexibility, and raising the Company's credit ratings," stated Bob Biggs, Executive Chairman of DPL. DPL previously announced that it would use the proceeds from the private equity portfolio sale for debt reduction. The Company also said it would explore opportunities to invest in the core electric business that would assure regulatory recovery and that it intends to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. DPL common shares. As part of its debt reduction commitment, DPL today announced that its Board has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the use of up to an aggregate of $500 million to repurchase all or part of five outstanding debt issues including any required premiums. The actual amounts applied, if any, to reduce each series will depend on the amount and price of the bonds tendered and market conditions at the time of the repurchase offer. Accordingly, DPL today commenced three partial tender offers for the debt securities listed below for a maximum aggregate purchase price of $246 million (the "Maximum Tender Offer Amount"). The Company will conduct each offer in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the terms and conditions described in the Offer to Purchase dated July 14, 2005 and accompanying Letter of Transmittal Letter of Transmittal A document used by security holder to accompany certificates surrendered in an exchange or other corporate action. . Each offer will expire at 12:00 midnight, 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. time, on August 10, 2005, unless extended (the "Expiration Time Expiration time The time of day by which all exercise notices must be received on the expiration date. Technically, the expiration time is currently 11:59AM on the expiration date, but public holders of option contracts must indicate their desire to exercise no later than 5:30PM on "). The Company's offers consist of one offer (the "Maximum Tender Offer") to purchase an amount of the Company's 8.125% Capital Securities due 2031 (the "2031 Notes") for a maximum aggregate purchase price of up to the Maximum Tender Offer Amount and two offers (each a "Contingent Tender Offer") to purchase an amount of the Company's 6.875% Senior Notes due 2011 (the "2011 Notes") and 8.0% Senior Notes due 2009 (the "2009 Notes") for an aggregate purchase price equal to the excess, if any, of the Maximum Tender Offer Amount over the aggregate purchase price for the 2031 Notes accepted for purchase by the Company in the Maximum Tender Offer. The amount of 2011 Notes and 2009 Notes that is purchased in each Contingent Tender Offer, if any, will be based on the order of priority for such series of notes, as set forth below. The Company will accept notes for purchase on a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. basis, if applicable, pursuant to the Offer to Purchase. The offers are independent and no offer is conditioned upon any minimum amount of notes being tendered. The Contingent Tender Offers, however, are conditioned on the Maximum Tender Offer Amount exceeding the aggregate purchase price for the 2031 Notes accepted for purchase. If the aggregate purchase price for the 2031 Notes accepted for purchase is equal to the Maximum Tender Offer Amount, no notes tendered in the Contingent Tender Offers will be accepted for purchase. The purchase price for each $1,000 principal amount of notes tendered and accepted for purchase pursuant to each offer will be a price that results in a yield to maturity for each respective series of notes equal to the sum of: (i) the yield to maturity, calculated by the dealer manager in accordance with standard market practice, corresponding to the bid-side price of the applicable Reference U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Security, as indicated in the table below, at 2 p.m., New York City time, on July 27, 2005, plus (ii) the applicable fixed spread set forth for such series, as indicated in the table below. Holders can withdraw tenders at or before the Expiration Time but not thereafter. In addition to the purchase price, holders who tender will be paid any accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. and unpaid interest calculated up to and not including the settlement date. The settlement date is expected to be August 11, 2005. The following table shows each series of notes included in the offers:
Principal Maximum
Title of Security; Amount Tender Offer Priority
CUSIP Number Outstanding Amount Level
----------------------------------------------------------------------
Maximum Tender Offer
----------------------------------------------------------------------
8.125% Capital Securities due
2031; 23330AAC4 $300,000,000 $246,000,000 N/A
----------------------------------------------------------------------
Contingent Tender Offers
----------------------------------------------------------------------
6.875% Senior Notes due 2011; (b)
233293AH2 $400,000,000 1
----------------------------------------------------------------------
8.0% Senior Notes due 2009; (c)
233293AJ8 $175,000,000 2
----------------------------------------------------------------------
Fixed
Reference U.S. Bloomberg Spread
Title of Security; Treasury Reference (basis
CUSIP Number Security Page(a) points)
----------------------------------------------------------------------
Maximum Tender Offer
----------------------------------------------------------------------
8.125% Capital Securities due 5.375% U.S. BBT8
2031; 23330AAC4 Treasury Note
due February
15, 2031 161
----------------------------------------------------------------------
Contingent Tender Offers
----------------------------------------------------------------------
6.875% Senior Notes due 2011; 4.125% U.S. BBT6
233293AH2 Treasury Note
due May 15,
2015 62
----------------------------------------------------------------------
8.0% Senior Notes due 2009; 3.625% U.S. BBT5
233293AJ8 Treasury Note
due June 15,
2010 88
----------------------------------------------------------------------
(a) The applicable page on the Bloomberg Bond Trader (BBT series of
pages).
(b) The Company will purchase an amount of the 2011 Notes equal to the
excess, if any, of the Maximum Tender Offer Amount over the
aggregate purchase price for the 2031 Notes accepted for purchase.
(c) The Company will purchase an amount of the 2009 Notes equal to the
excess, if any, of the Maximum Tender Offer Amount over the
aggregate purchase price for the 2031 Notes and the 2011 Notes
accepted for purchase.
The Company has engaged Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. & Co. Incorporated as
dealer manager for the offers. Persons with questions regarding the
offers should be directed to Morgan Stanley toll-free at (800) 624-1804
or collect at (212) 761-1864 (attention: Arthur Rubin Arthur L. Rubin (born 1956) is an American mathematician who has earned a place among the five top-ranked undergraduate competitors (who are themselves not ranked against each other) in the William Lowell Putnam Competition four times (1970–73), a feat matched by only six ). Requests for
documents should be directed to Global Bondholder BondholderA firm often has stockholders and bondholders. In a liquidation, the bondholders have first priority. bondholder An individual or institution that owns bonds in a corporation or other organization. Services Corporation, the Information Agent and the Depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. for the offers, toll-free at (866) 612-1500 or collect at (212) 430-3774. Additionally, DPL has delivered notice to the Trustee for the 8.25% Senior Notes due March 1, 2007 stating that it intends to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. an aggregate principal amount of $200 million of such notes. There is currently $425 million outstanding in this series. On May 15, 2005 the Company redeemed the outstanding 7.83% Senior Notes due July 15, 2007 in the amount of $39 million. DPL is also in the process of refinancing: --$41.3 million in outstanding Ohio Water Development Authority obligations maturing through 2027 with a weighted average interest rate of 6.4%. --$137.8 million in outstanding Ohio Air Quality Development Authority obligations maturing through 2030 with a weighted average interest rate of 6.2%. --$35.3 million in outstanding Boone County, Kentucky Boone County is a county located in the U.S. state of Kentucky. It was formed in 1798. As of 2005, the population was 106,272. Its county seat is Burlington6. The county is named for frontiersman Daniel Boone. obligations maturing through 2022 with a weighted average interest rate of 6.5%. This press release is for informational purposes only and is not an offer to purchase or a solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to purchase with respect to any of the debt securities. The offers are made solely by the Offer to Purchase and the related Letter of Transmittal. About DPL DPL Inc. (NYSE:DPL) is a regional electric energy and utility company. DPL's principal subsidiaries include The Dayton Power and Light Company (DP&L); DPL Energy, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (DPLE DPLE Declarative Programming Languages in Education (conference) DPLE Digital Principle Local Exchange DPLE Danish Primary Laboratory for Electricity ); and DPL Energy Resources, Inc. (DPLER). DP&L, a regulated electric utility, provides service to over 500,000 retail customers in West Central Ohio; DPLE engages in the operation of merchant peaking generation facilities; and DPLER is a competitive retail electric supplier in Ohio, selling to major governmental, industrial, and commercial customers. DPL, through its subsidiaries, owns and operates approximately 4,400 megawatts of generation capacity, of which 2,800 megawatts are low cost coal-fired units and 1,600 megawatts are natural gas fired peaking units. Further information can be found at www.dplinc.com. Certain statements contained in this release are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Matters presented which relate to events or developments that are expected to occur in the future, including management's expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters constitute forward-looking statements. Forward-looking statements are based on management's beliefs, assumptions and expectation of the Company's future economic performance, taking into account the information currently available to management. These statements are not statements of historical fact. Such forward-looking statements are subject to risks and uncertainties and investors are cautioned that outcomes and results may vary materially from those projected due to many factors beyond DPL's control. Forward-looking statements speak only as of the date of the document in which they are made. We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion