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NRG wraps oversubscribed tender offer for 8½% notes, 7 5/8% notes
By Susanna Moon
Chicago, Feb. 10 - NRG Energy, Inc. said investors had tendered $308,520,000 of its $607,068,000 of 8½% senior notes due 2019 and $191,792,000 of its $800 million 7 5/8% senior notes due 2019.
The company accepted all of the tendered 8½% notes and $91,478,000 of the tendered 7 5/8% notes with a proration factor of 0.47804878, according to a press release.
The offer for up to $400 million of the two series of notes ended at midnight ET on Feb. 7, with settlement set for Feb. 10. The offer began on Jan. 10.
As of 5 p.m. ET on Jan. 24, the early tender date, holders had tendered $307,695,000 principal amount, or 50.7%, of the 8½% notes and $191,742,000 principal amount, or 24%, of the 7 5/8% notes.
For each $1,000 principal amount, the company will pay $1,070 for the 8½% notes and $1,055 for the 7 5/8% notes. These amounts include an early tender payment of $30.00 for each note tendered by the early tender date.
The 8½% notes have an acceptance priority level of 1, and the 7 5/8% notes have an acceptance priority level of 2.
NRG previously said it would make adjustments to avoid purchases of the notes in principal amounts other than integral multiples of $5,000 for the 8½% notes and $1,000 for the 7 5/8% notes.
The company priced $1.1 billion of 6¼% senior notes due 2022 at par on Jan. 10. It will use $400 million of the proceeds from the new notes to fund the tender offer, and the remaining portion of the total consideration will be paid with cash on hand.
The dealer manager was Barclays (800 438-3242 or 212 528-7581). The information agent was Global Bondholder Services Corp. (866 470-4500 or 212 430-3774).
NRG Energy is a power generating company based in Princeton, N.J.
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