NRG Lenders Agree to Reprice Its Term Loan B
January 20 2017 - 8:30AM
Business Wire
Company to save approximately $60 million in
interest expense over remaining life of loan
NRG Energy Inc. (NYSE: NRG) announces it will reprice its $1.9
billion Term Loan B due June 2023. The transaction is leverage
neutral and enhances free cash flow before growth via annual cash
interest savings.
The transaction will reduce the interest rate margin on the term
loan by 50 basis points to LIBOR +225 basis points. The LIBOR floor
remains at 0.75%.
As a result, the Company expects interest savings over the
remaining life of the loan to total approximately $60 million.
Expected interest savings in 2017 are estimated to be approximately
$9 million.
About NRG:
NRG is the leading integrated power company in the U.S., built
on the strength of the nation’s largest and most diverse
competitive electric generation portfolio and leading retail
electricity platform. A Fortune 200 company, NRG creates value
through best in class operations, reliable and efficient electric
generation, and a retail platform serving residential and
commercial businesses. Working with electricity customers, large
and small, we continually innovate, embrace and implement
sustainable solutions for producing and managing energy. We aim to
be pioneers in developing smarter energy choices and delivering
exceptional service as our retail electricity providers serve
almost 3 million residential and commercial customers throughout
the country.
Forward-Looking Statements:
This communication contains forward-looking statements that may
state NRG’s or its management’s intentions, beliefs, expectations
or predictions for the future. Such forward-looking statements are
subject to certain risks, uncertainties and assumptions, and
typically can be identified by the use of words such as “will,”
“expect,” “estimate,” “anticipate,” “forecast,” “plan,” “believe”
and similar terms. Although NRG believes that its expectations are
reasonable, it can give no assurance that these expectations will
prove to have been correct, and actual results may vary materially.
Factors that could cause actual results to differ materially from
those contemplated above include, among others, risks and
uncertainties related to the capital markets generally.
The foregoing review of factors that could cause NRG’s actual
results to differ materially from those contemplated in the
forward-looking statements included herein should be considered in
connection with information regarding risks and uncertainties that
may affect NRG’s future results included in NRG’s filings with the
SEC at www.sec.gov.
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version on businesswire.com: http://www.businesswire.com/news/home/20170120005273/en/
NRG Energy Inc.Media:Marijke Shugrue, 609-524-5262Candice Adams,
609-524-5428orInvestors:Kevin L. Cole, CFA, 609-524-4526Lindsey
Puchyr, 609-524-4527
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