NRG Energy begins tender offer for $1.09 billion 7 3/8% notes due 2017

By Susanna Moon

Chicago, Sept. 11 - NRG Energy, Inc. said it began a tender offer to purchase its outstanding $1.09 billion principal amount of 7 3/8% senior notes due 2017.

NRG also is soliciting the consents of holders to amend the notes to eliminate substantially all of the restrictive covenants and some events of default.

The total purchase price will be $1,041.25, including a consent premium of $30.00, per $1,000 principal amount of notes tendered by 5 p.m. ET on Sept. 18, the consent date.

The offer will end at 11:59 pm ET on Oct. 5.

Those who tender after the consent date will receive the tender offer payment of $1,011.25 per $1,000 of notes.

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

Funding for the offer will come from NRG's concurrent offering of $990 million principal amount of senior notes due 2023 as well as cash on hand.

The tender offer is conditioned on NRG having raised at least $990 million of proceeds from the offering of the new notes by the initial payment date.

Adoption of the proposed amendments is not a condition to the tender offer.

NRG plans to redeem any notes that remain outstanding after the offer ends, according to a company press release.

The company said on Sept. 10 that it planned to repurchase the notes using proceeds of its new issue.

Bank of America Merrill Lynch (888 292-0070 or collect 980 387-3907) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 488-1500 or collect 212 430-3774) is the information agent.

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