Dahlman Rose Provides Color on Dynergy, Hold

Dahlman Rose provided color on Dynergy (NYSE: DYN) after the company made a number of changes to its board members. In a research report published today, Dahlman Rose commented on the board's near term actions.

In the report, Dahlman Rose states, "With its new board seated for a one-year term, the company can focus on amending its bank facility covenants, which are highly likely to be breached, as soon as the current quarter. We would expect Dynegy's lending group to take into consideration the improved power price environment in 2012 and 2013 versus the current year, as well as any potential new capital infusions, such as a third-party loan. In addition, the company's fleet remains only 40% hedged next year, and any increased forward sales activity may be looked on favorably."

At the moment, Dahlman Rose has a Hold rating placed on the company's stock. On Wednesday, Dynergy closed the day at $5.85.