Reliant Energy plans to sell $1.25 billion senior notes in two tranches

By Paul A. Harris

St. Louis, May 24 - Houston-based Reliant Energy, Inc. announced in a Thursday press release that it plans to sell $1.25 billion of senior unsecured notes in seven-year and 10-year tranches in a transaction expected to close in June.

Proceeds will be used to fund the tender for the company's combined $1.1 billion of 9¼% and 9½% senior secured notes.

According to a market source, Goldman Sachs & Co., Deutsche Bank, JP Morgan and Merrill Lynch & Co. are involved in the tender.

Proceeds will also be used to repay a portion of the company's $400 million term loan.

The company also intends to put in place a new $700 million credit facility.

Reliant Energy provides electricity and energy services to retail and wholesale customers in the United States.

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