DOW JONES NEWSWIRES
NRG Energy Inc. (NRG) announced plans to sell $700 million in
10-year senior unsecured notes, using the proceeds to end credit
sleeves supporting the retail business one year earlier than
planned.
Under sleeves, an energy company in essence rents a highly rated
balance sheet. The higher-rated entity then buys or sells
commodities for the energy company, or hedges with or gets hedging
for that company. NRG said Tuesday if a deal to end the sleeves
early with either Merrill Lynch or other counterparties does go
through, the sale's proceeds will go toward "general corporate
purposes."
NRG's sale comes as it continues its fight to fend off a
hostile-takeover bid from Exelon Corp. (EXC). The Federal Energy
Regulatory Commission cleared the deal if one is reached for the
power-plant operator.
A slim majority of NRG shareholders have tendered their stakes
in support of Exelon's $5.15 billion bid. Exelon still has to get
additional federal and state approvals, including from the Nuclear
Regulatory Commission and state utility commissions such as those
in Texas and California.
Shares of both companies were inactive premarket.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com