Reliant Energy downsizes to $750 million, 10-year notes talked 6 5/8%-6 7/8%; $350 million shifted to bank loan

By Paul A. Harris

St. Louis, Dec. 13 - Price talk of 6 5/8%-6 7/8% emerged Monday on Reliant Energy Inc.'s downsized and restructured $750 million offering of 10-year non-call-five senior secured notes (expected B1/confirmed B+), according to syndicate sources.

The bonds are expected to price Tuesday afternoon.

The offering was downsized and restructured from $1.1 billion in two parts, with the company eliminating a planned six-year floating-rate tranche and shifting $350 million to its term loan B.

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.

Proceeds will be used to refinance debt, including the company's $2.1 billion revolver and its $1.7 billion term loan at the parent company, as well as $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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.