New Issue: Reliant Energy prices $750 million 10-year notes at par to yield 6¾%

By Paul A. Harris

St. Louis, Dec. 14 - Reliant Energy Inc. priced $750 million of 10-year senior secured notes (B1/B+) at par on Tuesday to yield 6¾%, according to a syndicate source.

Price talk was 6 5/8% to 6 7/8%.

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

A planned six-year floating-rate note tranche was eliminated, and the issue was downsized by $350 million, which was shifted to the Houston-based energy company's term loan B.

Proceeds will be used to refinance debt, including the company's $2.1 billion revolver and a $1.7 billion term loan at the parent company, as well as $300 million of Orion Power Midwest's bank debt, and $400 million of floating-rate tax-exempt bonds.

Issuer:	Reliant Energy Inc.
Amount:	$750 million (decreased from $1.1 billion, with $350 million shifted to term loan B)
Maturity:	Dec. 15, 2014
Security description:	Senior secured notes
Bookrunners:	Goldman Sachs (physical books), Banc of America Securities LLC, Barclays Capital, Deutsche Bank Securities, Merrill Lynch & Co.
Co-managers:	ABN Amro, Scotia Capital, UBS Investment Bank, JP Morgan
Coupon:	6¾%
Price:	Par
Yield:	6¾%
Spread:	262 basis points
Call features:	Callable after Dec. 15, 2009 at 106.75, 103.375, 102.25, 101.125, par on and after Dec. 15, 2013
Trade date:	Dec. 14
Settlement date:	Dec. 22
Ratings:	Moody's: B1
	Standard & Poor's: B+
Price talk:	6 5/8%-6 7/8%

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