NRG Energy prices upsized $420 million convertibles to yield 4%, up 24.5%

New York, Dec. 14 - NRG Energy Corp. priced an upsized $420 million of convertible perpetual preferreds to yield 4% with a 24.5% initial conversion premium.

The deal, priced after the close Tuesday, came near the rich end of talk for a 4.0% to 4.5% dividend and a 22% to 25% initial conversion premium. It was originally announced at $400 million in size.

Deutsche Bank Securities and Citigroup Global Markets Inc. are placement agents for the Section 4(2) offering, which is being made with registration rights.

The conversion price is $40.00 per share.

The issue will be non-callable for five years.

The Minneapolis-based power generation firm said proceeds would be used to redeem a portion of its 8% senior secured second-lien notes due 2013 and to enable NRG to use existing cash balances to repurchase 13 million shares held by investment partnerships managed by MatlinPatterson Global Advisors LLC.

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