By Paul A. Harris
St. Louis, June 6 - Reliant Energy, Inc. placed $1.3 billion of senior unsecured notes (B3/B-/B+) in an upsized transaction on Wednesday, according to an informed source.
The Houston-based company priced a $575 million tranche of seven-year notes at par to yield 7 5/8%.
Meanwhile Reliant Energy priced a $725 million tranche of 10-year notes, also at par, to yield 7 7/8%.
Both tranches were priced on top of the price talk.
Goldman, Sachs & Co., Deutsche Bank Securities, JP Morgan, Merrill Lynch & Co. were joint bookrunners for the Securities and Exchange Commission-registered deal, which was upsized from $1.25 billion. ABN Amro and Bear, Stearns & Co. were co-managers.
Proceeds will be used to fund a 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.
Reliant Energy provides electricity and energy services to retail and wholesale customers.
| Issuer: | Reliant Energy Inc.
|
| Amount: | $1.3 billion (increased from $1.25 billion)
|
| Security description: | Senior unsecured notes
|
| Bookrunners: | Goldman, Sachs & Co., Deutsche Bank Securities, JP Morgan, Merrill Lynch & Co.
|
| Co-managers: | ABN Amro, Bear, Stearns & Co.
|
| Trade date: | June 6
|
| Settlement date: | June 13
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Fitch: B+
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $575 million
|
| Maturity: | June 15, 2014
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 268 bps
|
| Price talk: | 7 5/8% area
|
|
|
| 10-year notes
|
| Amount: | $725 million
|
| Maturity: | June 15, 2017
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 292 bps
|
| Price talk: | 7 7/8% area
|
|
|
|
|
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