Reliant Energy sets talk for $1.25 billion senior unsecured notes

By Paul A. Harris

St. Louis, June 5 - Reliant Energy, Inc. set price talk for its $1.25 billion two-part offering of senior unsecured notes (B3/B-/B+) on Tuesday, according to an informed source.

The company talked a tranche of seven-year notes at the 7 5/8% area and a tranche of 10-year notes at the 7 7/8% area.

Tranche sizes remain to be determined.

Books close at 1 p.m. ET on Wednesday, and the notes are scheduled to price thereafter.

Goldman, Sachs & Co., Deutsche Bank Securities, JP Morgan and Merrill Lynch & Co. will be joint bookrunners for the Securities and Exchange Commission-registered offering. ABN Amro and Bear, Stearns & Co. will be co-managers.

Proceeds will be used to fund the tender for the company's combined $1.1 billion of 9¼% and 9½% senior secured notes and to repay a portion of the company's $400 million term loan.

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

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