NRG Energy launches cash tender offer for 6¼% notes due 2024

By Marisa Wong

Morgantown, W.Va., May 7 – NRG Energy, Inc. announced it has begun a cash tender offer to purchase any and all of its $733.6 million outstanding 6¼% senior notes due 2024.

The tender offer will expire at 5 p.m. ET on May 13.

Holders will receive a total consideration of $1,033.75 per $1,000 principal amount plus any accrued interest up to but excluding the settlement date, which is expected to be May 14.

Tenders may be withdrawn at any time before the expiration time.

The company will use proceeds from a concurrent private placement of senior notes due 2029, along with cash on hand, to fund the purchase of the existing notes.

The tender offer is not conditioned on any minimum amount of notes being tendered but is contingent on NRG raising at least $733 million in gross proceeds from the offering of new notes.

NRG plans to redeem any 2024 notes not purchased under the tender offer at a price of 103.125 plus accrued interest, if any, to the redemption date.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424), Credit Agricole Securities (USA) Inc. (866 807-6030 or 212 261-7802) and MUFG Securities Americas Inc. (877 744-4532 or 212 405-7481) will act as joint dealer managers for the tender offer.

D.F. King & Co., Inc. (800 755-3105 or 212 269-5550, nrg@dfking.com or www.dfking.com/nrg) is the information agent.

The power company is based in Princeton, N.J.

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