Dynegy Obtains Credit, Posts Quarterly Loss

Dynegy Inc. said it secured a crucial $900-million line of credit, sending its stock price soaring even though the energy giant also reported a $140-million loss during the first three months of the year.

The commitment of financing, which fell $300 million short of what Dynegy had sought, strengthens the balance sheet of the Houston-based company when Wall Street is getting increasingly worried about a review of one its natural gas deals by the Securities and Exchange Commission.

Shares of Dynegy rose 30% to $18 on the New York Stock Exchange, making up some of the steep stock losses incurred after the SEC review was announced last week.

Dynegy blamed its quarterly loss, which amounted to 41 cents a share, on the under-performance of its telecommunications division. During the same period last year, the company made $139 million, or 41 cents a share.