Dynegy Inc. Monday announced that it has closed a series of refinancing and restructuring transactions, including (a) the offering of $1.45 billion in second priority senior secured notes and $175 million in convertible subordinated debentures and (b) the exchange of the $1.5 billion Series B Preferred Stock previously held by a subsidiary of ChevronTexaco Corp. Dynegy also received approximately $40 million from ChevronTexaco relating to the return of certain pre-payment amounts previously held by ChevronTexaco.

The net proceeds from the refinancing transactions, together with existing cash on hand, were used to:

Dynegy has granted the initial purchasers of the convertible subordinated debentures an option to purchase up to an additional $50 million of convertible subordinated debentures. The option remains exercisable through Aug. 31, 2003.

The convertible subordinated debentures are not registered under the Securities Act of 1933, or any state securities laws. Therefore, the convertible subordinated debentures subject to the initial purchasers’ over-allotment option may not be offered or sold in the United States absent registration or an exemption from registration

Dynegy will hold an investor conference call at 11 a.m. EDT/10 a.m. CDT on Wednesday, Aug. 13, 2003 to review second quarter 2003 financial results, discuss the completion of key aspects of the refinancing and restructuring plan and update its 2003 guidance estimate. A live simulcast of the conference call will be available on the “News and Financials” section of www.dynegy.com.

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