Reliant Energy gets tenders for 99% of 5% convertibles in exchange offer

By Laura Lutz

Washington, Dec. 21 - Reliant Energy, Inc. received tenders for $273 million, or 99%, of its $275 million outstanding principal amount of 5% convertible senior subordinated notes due 2010 in an exchange offer that ended at midnight ET on Dec. 20.

The company will exchange 104.8108 shares plus $150.00 in cash for each $1,000 principal amount of notes.

"This transaction is the latest in a series of steps we have taken to improve Reliant's financial flexibility," said Mark Jacobs, executive vice president and chief financial officer, in a news release.

"This tender offer improves our credit metrics without diluting our equity. Since December 2002, we have reduced net debt from $7.8 billion to $3.3 billion."

Global Bondholder Services Corp. is the information agent (866 804-2200 or call collect 212 430-3774). Wilmington Trust Co. is the exchange agent (302 636-6470).

Based in Houston, Reliant Energy provides electricity and energy services.

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