PRINCETON, N.J.–(BUSINESS WIRE)–NRG Energy, Inc. (NYSE:NRG) intends to commence an offering of senior
secured first lien notes, consisting of senior secured first lien notes
due 2024 and senior secured first lien notes due 2029 (collectively, the
“Notes”). The Notes will be guaranteed on a first-priority basis by each
of NRG’s current and future subsidiaries that guarantee indebtedness
under its credit agreement. The Notes will be secured by a first
priority security interest in the same collateral that is pledged for
the benefit of the lenders under NRG’s credit agreement, which consists
of a substantial portion of the property and assets owned by NRG and the
guarantors. The collateral securing the Notes will be released if we
obtain an investment grade rating from two out of the three rating
agencies, subject to reversion if such rating agencies withdraw our
investment grade rating or downgrade our rating below investment grade.
NRG intends to use the net proceeds from the offering, together with
cash on hand, to reduce the amount outstanding under its senior first
priority secured term loan and to pay fees and expenses related to the
offering of the Notes.
The Notes and related guarantees are being offered only to qualified
institutional buyers in reliance on Rule 144A under the Securities Act
of 1933, as amended (the “Securities Act”), or, outside the United
States, to persons other than “U.S. persons” in compliance with
Regulation S under the Securities Act. The Notes and related guarantees
have not been registered under the Securities Act or the securities laws
of any other jurisdiction and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements. This press release does not constitute an
offer to sell any security, including the Notes, nor a solicitation for
an offer to purchase any security, including the Notes.
About NRG
At NRG, we’re redefining power by putting customers at the center of
everything we do. We create value by generating electricity and serving
nearly 3 million residential and commercial customers through our
portfolio of retail electricity brands. A Fortune 500 company, NRG
delivers customer-focused solutions for managing electricity, while
enhancing energy choice and working towards a sustainable energy future.
Forward-Looking Statements
This communication contains forward-looking statements that may state
NRG’s or its management’s intentions, beliefs, expectations or
predictions for the future. Such forward-looking statements are subject
to certain risks, uncertainties and assumptions, and typically can be
identified by the use of words such as “will,” “expect,” “estimate,”
“anticipate,” “forecast,” “plan,” “believe” and similar terms. Although
NRG believes that its expectations are reasonable, it can give no
assurance that these expectations will prove to have been correct, and
actual results may vary materially. Factors that could cause actual
results to differ materially from those contemplated above include,
among others, risks and uncertainties related to the capital markets
generally and whether NRG will offer the Notes or consummate the
offering, the anticipated terms of the Notes and the anticipated use of
proceeds.
The foregoing review of factors that could cause NRG’s actual results to
differ materially from those contemplated in the forward-looking
statements included herein should be considered in connection with
information regarding risks and uncertainties that may affect NRG’s
future results included in NRG’s filings with the SEC at www.sec.gov.
Contacts
Media:
Candice Adams
609.524.5428
Investors:
Kevin
L. Cole, CFA
609.524.4526
