Dynegy Inc. has filed a registration statement on Form S-1 with the Securities and Exchange Commission (SEC) concerning a proposed underwritten initial public offering of 8.8 million common units in Dynegy Energy Partners LP, a Delaware limited partnership that has been formed to own and operate a portion of Dynegy’s large natural gas liquids business.

The Houston-based partnership will be engaged in fractionation, storage, terminalling, transportation, distribution and marketing natural gas liquids to consumers throughout North America. Dynegy and certain of its affiliates will be the general partner of the partnership.

Based on a potential price of $20 per unit, the company expects net proceeds of about $165.2 million. It plans to pay $148.3 million owed to Dynegy, reserve $13.7 million for working capital and capital expenditures, and pay $3.2 million of expenses associated with the offering and the related transactions.

The filing said common units are entitled to receive distributions of available cash of $0.4375 a quarter, or $1.75 on an annualized basis, before any distributions are paid on the company’s subordinated units. The offering will be underwritten by Lehman Brothers.

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