NEW YORK (TheStreet) -- Shares of Dynegy Inc. (DYN) are soaring 17.50% to $34.92 in early morning trade after the power producer announced two separate deals for coal and natural gas generation assets worth a total of $6.25 billion, the New York Times reports.
The company is buying ownership interests in power plants in the Midwest from Duke Energy (DUK) and its retail business for $2.8 billion.
Dynegy is also buying ownership interests in plants in New England, Pennsylvania and the Midwest from private equity firm Energy Capital Partners for $3.45 billion.
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The two transactions will add 12,500 megawatts of generating capacity, giving Dynegy nearly 26,000 megawatts of generating capacity nationally. Dynegy will also enter three new retail markets: Ohio, Pennsylvania and Michigan, the Times said.
Houston-based Dynegy plans to issue $5 billion in new unsecured bonds and $1.25 billion in equity and equity-linked securities to help finance the transactions.
The two deals are expected to close by the end of the first quarter 2015.
TheStreet Ratings team rates DYNEGY INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate DYNEGY INC (DYN) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins."