NRG Yield plans $300 million five-year convertibles to yield 3%-3.5%, up 27.5%-32.5%

By Rebecca Melvin

New York, Feb. 4 - NRG Yield Inc. launched an offering of $300 million of five-year convertibles after the market close on Tuesday that was seen pricing after the market close on Wednesday. The notes were talked to yield 3% to 3.5% with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.

The Rule 144A offering has a $45 million greenshoe and was being sold via joint bookrunners Morgan Stanley & Co. LLC, BofA Merrill Lynch, RBC Capital Markets and Goldman Sachs & Co.

The notes will be fully and unconditionally guaranteed on a senior basis by NRG Yield LLC and NRG Yield Operating LLC, the direct and indirect subsidiaries of the company.

NRG Yield will lend proceeds from this offering to Yield Operating LLC, and Yield Operating LLC intends to use the proceeds for working capital and general corporate purposes, including the acquisition of assets from NRG Energy Inc. or other third parties, although NRG Yield does not currently have any agreements in place to do so, according to a news release.

The convertibles are non-callable.

Princeton, N.J.-based NRG Yield is an electricity generator with natural gas or duel-fired facilities, as well as solar and wind generation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.