By Rebecca Melvin
Princeton, N.J., Jan. 26 - NRG Energy Inc. priced $500 million of mandatory preferred convertibles at par of 250 to yield 5.75% with an initial conversion premium of 24%, according to a syndicate source.
The registered deal priced at the rich end of talk, which was for a coupon of 5.75% to 6.25% and an initial conversion premium of 20% to 24%.
There is a $75 million greenshoe for the offering, which was sold via joint bookrunners Citigroup Global Markets and Morgan Stanley.
Concurrently with the mandatories, NRG Energy priced $1 billion of common stock at $48.75 per share, and $3.6 billion of unsecured notes. The unsecured notes were priced in two tranches, including $1.2 billion eight-year notes at par to yield 7.25% and $2.4 billion 10-year notes at par to yield 7.375%.
Proceeds will be used to finance NRG's previously announced acquisition of Texas Genco LLC.
The offerings were made under a shelf registration.
Princeton, N.J.-based NRG Energy operates power plants in the U.S. northeast, south central and western regions.
(This article updates an initial pricing story published Jan. 26.)
| Issuer: | NRG Energy Inc.
|
| Issue: | Mandatory convertible preferreds
|
| Bookrunners: | Citigroup Global Markets and Morgan Stanley
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | March 16, 2009
|
| Coupon: | 5.75%
|
| Price: | Par, 250
|
| Yield: | 5.75%
|
| Conversion premium: | 24%
|
| Conversion price: | $60.45
|
| Conversion ratio: | 4.1356/5.1282 shares
|
| Price talk: | 5.75%-6.25%, up 20%-24%
|
| Pricing date: | Jan. 25
|
| Settlement date: | Feb. 2
|
| Distribution: | Registered, off the shelf
|
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