Reliant Energy to launch $1.1 billion two-tranche note offering Monday

By Paul A. Harris

St. Louis, Dec. 3 - Reliant Energy Inc. will start a roadshow Monday for its $1.1 billion offering of senior secured notes (expected ratings B1/B+), according to a syndicate source.

Pricing is expected to take place during the first half of the week of Dec. 13.

Goldman Sachs, Banc of America Securities LLC, Barclays Capital, Deutsche Bank Securities and Merrill Lynch & Co. are joint bookrunners for the off-the-shelf offering. ABN Amro, Scotia Capital, UBS Investment Bank and JP Morgan are co-managers.

The company will sell 10-year fixed-rate notes and six-year floating-rate notes, with tranche sizes yet to be determined.

The fixed-rate notes are non-callable for five years, and the floating-rate notes are non-callable for two years.

The company will also obtain a new credit facility and sell fixed-rate tax-exempt bonds.

Proceeds will be used to refinance debt, including the $2.1 billion revolving credit facility and the $1.7 billion term loan at the parent company, $300 million of Orion Power Midwest bank debt and $400 million of floating-rate tax-exempt bonds.

Reliant Energy is a Houston-based energy company.

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