Clearway Energy driving by with $200 million tap of 4¾% green bond; initial talk par ½ area

By Paul A. Harris

Portland, Ore., May 19 – Clearway Energy Operating LLC plans to price a $200 million add-on to its 4¾% senior notes due March 15, 2028 (Ba2/BB) in a Tuesday drive-by, according to market sources.

The Rule 144A and Regulation S green eligible tap is in the market with initial price talk in the 100.5 area, according to a trader.

J.P. Morgan Securities LLC is leading the sale.

The notes are callable by means of a make-whole call at Treasuries plus 50 basis points until March 15, 2023, then become callable at 103.563. They feature a 40% equity clawback at 104.75 until March 15, 2023.

The issuing entity is a subsidiary of Clearway Energy Inc., a Princeton, N.J.-based solar- and wind-generated power provider.

Proceeds will be used to finance or refinance, in part or in full, new and existing projects and assets meeting certain renewable energy generation eligibility criteria. Specifically, Clearway Operating intends to use the proceeds for the repayment of its $45 million 3 ¼% convertible notes at maturity.

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