NRG Energy begins tender offer for $1.2 billion 7¼% notes due 2014

By Marisa Wong

Madison, Wis., Jan. 11 - NRG Energy, Inc. said that it has started a cash tender offer to purchase any and all of its $1.2 billion of outstanding 7¼% senior notes due 2014.

NRG is also soliciting consents from holders to certain proposed amendments to the indenture governing the 7¼% notes. The amendments would eliminate substantially all of the restrictive covenants and some events of default and related provisions.

The tender offer will expire at 11:59 p.m. ET on Feb. 8.

Holders who tender their notes and deliver consents prior to 5 p.m. ET on Jan. 25, the consent date, will receive the total consideration of $1,020.63 per $1,000 principal amount of notes, which includes a $20.00 consent payment.

Holders who tender their notes after the consent date but on or before the expiration date will receive only the tender consideration of $1,000.63 per $1,000 of notes, which is equal to the total consideration less the consent payment.

Holders will also receive accrued interest up to but excluding the applicable payment date.

NRG plans to redeem any 7¼% notes that remain outstanding after the tender offer is completed.

The tender offer will be funded with proceeds from NRG's concurrent private placement of $1.2 billion of senior notes due 2018.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424) is the dealer manager and solicitation agent, and Global Bondholder Services Corp. (866 389-1500 or 212 430-3774) is the information agent.

NRG is a Princeton, N.J.-based power generation company.

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