WEEK OF JAN. 23

UNITED AUTO GROUP INC. (Symbol: UAG): to price $250 million of 20-year convertibles; talked to yield 3% to 3.5%, up 25% to 30%; to price after markets close on Wednesday; Rule 144A; via bookrunner Merrill Lynch with Thomas Weisel as co-manager; greenshoe $50 million; non-callable for five years; puts in years five, 10 and 15; contingent conversion at a trigger of 120%; contingent payment, also at a trigger of 120%; dividend and takeover protection; par value of $1,000; proceeds to repay existing long-term debt under revolving senior credit facility, which may be re-borrowed, and to purchase, simultaneously with the offering, up to 500,000 shares of stock; Bloomfield Hills, Mich.-based automotive retailer.

NRG ENERGY INC. (Symbol: NRG): to price $500 million of mandatory convertible preferreds; talked to yield 5.75% to 6.25%, up 20% to 24%; to price Wednesday, via joint bookrunners Citigroup Global Markets and Morgan Stanley; 15% greenshoe; concurrent with offerings of $1 billion equity and $2.5 billion debt; to finance roughly $4 billion of its $5.8 billion acquisition of Texas Genco LLC; Princeton, N.J.-based energy company with power plants in the U.S. southeast, west and northeast; Texas Genco has operations in eastern Texas; the transaction is expected to close during the quarter.

ON THE HORIZON

DRS TECHNOLOGIES INC. (Symbol: DRS): to price $300 million of senior subordinated convertible notes; as part of a mix of borrowings to help fund its acquisition of Engineered Support Systems Inc. (ESSI); other financings include $124.7 million under a new revolving credit facility, $200 million from an expanded existing term loan and $700 million of new high-yield debt; Parsippany, N.J.-based defense company; ESSI is a St. Louis-based diversified supplier of integrated military electronics, support equipment and technical services.

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