Reliant Energy starts exchange offer for 5% convertibles

By Jennifer Chiou

New York, Nov. 22 - Reliant Energy, Inc. announced the start of an exchange offer for its $275 million of 5% convertible senior subordinated notes due 2010.

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

The offer ends at midnight ET on Dec. 20.

"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.

"Reliant's stock price has more than doubled since we issued the notes, and they are now deeply in the money. Tendering for the notes will reduce debt and strengthen our credit profile without diluting our equity."

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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