By William Gullotti and Cristal Cody
Buffalo, N.Y., Aug. 16 – NRG Energy Inc. further detailed its $500 million of pre-capitalized trust securities (Baa3//BBB-) that priced on Tuesday, according to information provided by a market source on Wednesday.
Alexander Funding Trust II is the issuer.
The securities are redeemable July 31, 2028 and will have a distribution rate of 7.467%.
The securities priced at a spread of 310 basis points over the five-year Treasury, tighter than initial talk in the Treasuries plus 345 bps area.
BofA Securities Inc., BMO Capital Markets Corp., J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC are the bookrunners.
The new securities are replacing NRG’s existing securities issued by Alexander Funding Trust and maturing on Nov. 15, 2023.
NRG Energy is an energy company based in Houston.
| Issuer: | Alexander Funding Trust II
|
| Guarantor: | Current and future subsidiaries that guarantee debt under NRG Energy’s credit agreement
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| Amount: | $500 million
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| Issue: | Pre-capitalized trust securities
|
| Maturity: | July 31, 2028
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| Bookrunners: | BofA Securities Inc., BMO Capital Markets Corp., J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC
|
| Coupon: | 7.467%
|
| Spread: | Treasuries plus 310 bps
|
| Trade date: | Aug. 15
|
| Settlement date: | Aug. 29
|
| Ratings: | Moody’s: Baa3
|
| Fitch: BBB-
|
| Distribution: | Rule 144A
|
| Initial talk: | Treasuries plus 345 bps area
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