Reliant Energy to make $240 million offer to secured bondholders via asset sale proceeds

By Jennifer Chiou

New York, May 1 - Reliant Energy Inc. announced the close of the sale of its Texas retail business to NRG Energy, Inc., and in conjunction with the close, Reliant will offer its secured bondholders about $240 million of the proceeds.

Also, the company said it will change its name to RRI Energy, Inc., effective May 2.

The Texas retail business was sold for $287.5 million in cash plus estimated working capital of about $65 million, amounting to net proceeds of about $300 million.

On March 2, Reliant Energy announced that it would offer secured debt holders proceeds from the asset sale to reduce outstanding debt.

Reliant is Houston-based provider of electricity and energy services.

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