NRG Energy, Inc. Prices $1.1 Billion of Senior Secured First Lien Notes
May 20 2019 - 5:16PM
Business Wire
NRG Energy, Inc. (NYSE:NRG) has priced its offering of $600.0
million in aggregate principal amount of 3.750% senior secured
first lien notes due 2024 at a price to the public of 99.971% of
their face value (the “2024 Notes”) and $500.0 million in aggregate
principal amount of 4.450% senior secured first lien notes due 2029
at a price to the public of 99.869% of their face value (the “2029
Notes” and, together with the 2024 Notes, the “Notes”). The Notes
will be guaranteed on a first-priority basis by each of NRG’s
current and future subsidiaries that guarantee indebtedness under
its credit agreement. The Notes will be secured by a first priority
security interest in the same collateral that is pledged for the
benefit of the lenders under NRG’s credit agreement, which consists
of a substantial portion of the property and assets owned by NRG
and the guarantors. The collateral securing the Notes will be
released if NRG obtains an investment grade rating from two out of
the three rating agencies, subject to reversion if such rating
agencies withdraw our investment grade rating or downgrade our
rating below investment grade.
The 2024 Notes mature on June 15, 2024, and the 2029 Notes
mature on June 15, 2029. The offering is expected to close on May
28, 2019, subject to customary closing conditions.
NRG intends to use the net proceeds from the offering, together
with cash on hand, to repay in full its senior first priority
secured term loan and to pay fees and expenses related to the
offering of the Notes.
The Notes and related guarantees are being offered only to
qualified institutional buyers in reliance on Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”), or,
outside the United States, to persons other than “U.S. persons” in
compliance with Regulation S under the Securities Act. The Notes
and related guarantees have not been registered under the
Securities Act or the securities laws of any other jurisdiction and
may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements. This
press release does not constitute an offer to sell any security,
including the Notes, nor a solicitation for an offer to purchase
any security, including the Notes.
About NRG
At NRG, we’re redefining power by putting customers at the
center of everything we do. We create value by generating
electricity and serving nearly 3 million residential and commercial
customers through our portfolio of retail electricity brands. A
Fortune 500 company, NRG delivers customer-focused solutions for
managing electricity, while enhancing energy choice and working
towards a sustainable energy future.
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 and whether
NRG will offer the Notes or consummate the offering, the
anticipated terms of the Notes and the anticipated use of
proceeds.
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: https://www.businesswire.com/news/home/20190520005820/en/
Media:Candice Adams609.524.5428Investors:Kevin L.
Cole, CFA609.524.4526
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