NRG Energy, Inc. (NYSE:NRG) announced today that it has amended
the terms of its previously announced tender offers to purchase
certain of its outstanding senior notes (the “Tender Offers”) to
increase: (i) the tender offer cap for the 2018 Notes from $300
million (the “Initial 2018 Notes Cap”) to $400 million (the
“Increased 2018 Notes Cap”); and (ii) the overall cap for the
Tender Offers from $1.0 billion (the “Initial Maximum Tender Cap”)
to $1.1 billion (the “Increased Maximum Tender Cap”). NRG is also
amending the proration methodology for acceptance of tendered 2018
Notes, as described in greater detail below. All other terms of the
Tender Offers remain unchanged.
The table below sets forth the results of the Tender Offers,
according to information provided by the tender agent, as of the
Early Tender Deadline:
Title of
Notes
Aggregate Principal Amount Outstanding (in
millions)
Amount
of Notes
Tendered (in
millions)
Tender
Offer
Cap (in
millions)
Tender
Offer Consideration(1)
Early
Participation Amount(1)
Total
Consideration(1)
Fixed-Price
Tender Offers
7.625% Senior Notes due 2018 $954 $548
$400 (as amended)
$1,060.00 $30.00 $1,090.00 8.250% Senior Notes due 2020 $1,058 $521
$250 $1,013.75 $30.00 $1,043.75 7.875% Senior Notes due 2021 $1,128
$620 $250 $1,011.88 $30.00 $1,041.88
Dutch Auction
Tender Offer
6.250% Senior Notes due 2022 $1,060 $214 $200 $962.50 $30.00
$992.50 6.625% Senior Notes due 2023 $898 $144 $965.00 $30.00
$995.00 6.250% Senior Notes due 2024 $838 $224 $957.50 $30.00
$987.50
__________
(1) Per $1,000 principal amount of Notes validly tendered and
accepted for purchase. The total consideration includes the Early
Participation Amount.
The Tender Offers are oversubscribed in each series of notes
being conducted as a fixed-price tender offer and for the three
series of notes being conducted as a pooled “Dutch Auction” tender
offer. As a result, NRG will not accept for purchase any additional
notes tendered in the Tender Offers after the “Early Tender
Deadline” of 5:00 p.m., New York City time, on May 20, 2016, with
the exception of 2018 Notes tendered after the Early Tender
Deadline (subject to proration as set forth below). Holders of 2018
Notes will be permitted to submit such notes at any time after the
Early Tender Deadline and on or before June 6, 2016 (the
“Expiration Date”); however, such 2018 Notes tendered after the
Early Tender Deadline will not receive the early participation
amount of $30.00 per $1,000 principal amount of the Notes (the
“Early Participation Amount”).
Assuming the successful consummation of NRG’s previously
announced offering of $1.0 billion in aggregate principal amount of
7.25% senior notes due 2026, NRG expects to make payment on May 25,
2016 (the “Early Payment Date”) for the notes it has accepted for
purchase as of the Early Tender Deadline, subject to proration and
the applicable tender caps as described in the Offer to Purchase,
dated May 9, 2016 (the “Offer to Purchase”). Holders of notes that
were validly tendered prior to the Early Tender Deadline and
accepted for purchase will receive the Total Consideration, which
includes the Early Participation Amount, plus accrued and unpaid
interest up to, but not including, the Early Payment Date.
The settlement date for 2018 Notes validly tendered after the
Early Tender Deadline and on or before the Expiration Date and
which are accepted for purchase will occur promptly following the
Expiration Date.
The withdrawal deadline was 5:00 p.m., New York City time on May
20, 2016. As a result, validly tendered notes may no longer be
withdrawn or revoked.
All Notes (other than the 2018 Notes) validly tendered and not
validly withdrawn prior to the Early Tender Deadline will be
subject to proration as described in the Offer to Purchase. With
respect to the 2018 Notes, the aggregate principal amount of such
notes tendered as of the Early Tender Deadline, which is
approximately $548 million, will be eligible for acceptance subject
to initial proration based on the Initial 2018 Notes Cap. The
excess amount of 2018 Notes tendered as of the Early Tender
Deadline remaining after initial proration, or approximately $248
million, plus the aggregate amount of any 2018 Notes tendered after
the Early Tender Deadline, will be further subject to proration
based on the difference between the Initial 2018 Notes Cap and the
Increased 2018 Notes Cap, or $100 million.
Requests for documents relating to the Tender Offers may be
directed to D.F. King & Co., Inc., the Information Agent, at
(866) 620-2538 (Toll-Free) or (212) 232-3325. BofA Merrill Lynch
and Deutsche Bank Securities Inc. are acting as Dealer Managers for
the Tender Offers. Questions regarding the Tender Offers may be
directed to BofA Merrill Lynch at (888) 292-0070 (U.S. Toll-Free)
or (980) 388-3646 (Collect) or Deutsche Bank Securities Inc. at
(855) 287-1922 (U.S. Toll-Free) or (212) 250-7527 (Collect).
The complete terms and conditions of the Tender Offers are
described in the Offer to Purchase, copies of which may be obtained
at no charge from D.F. King & Co., Inc. The Company reserves
the right to amend the terms of the Tender Offers or to extend the
Expiration Date for the Tender Offers, in its sole discretion, at
any time.
None of the Company, its board of directors, the Dealer
Managers, the Information Agent, or the trustee with respect to the
Notes is making any recommendation as to whether holders of the
Notes should tender any Notes in response to any of the Tender
Offers. Holders must make their own decision as to whether to
tender any of their Notes and, if so, the principal amount of Notes
to tender.
This press release is for informational purposes only and is
not an offer to buy, nor the solicitation of an offer to sell any
of the Notes. The Tender Offers are being made solely by the
Company's Offer to Purchase. The full details of the Tender
Offers, including complete instructions on how to tender Notes, are
included in the Offer to Purchase. Holders of the Notes are
strongly encouraged to carefully read the Offer to Purchase because
it contains important information.
About NRG
NRG is the leading integrated power company in the U.S., built
on the strength of the nation’s largest and most diverse
competitive electric generation portfolio and leading retail
electricity platform. A Fortune 200 company, NRG creates value
through best in class operations, reliable and efficient electric
generation, and a retail platform serving residential and
commercial businesses. Working with electricity customers, large
and small, we continually innovate, embrace and implement
sustainable solutions for producing and managing energy. We aim to
be pioneers in developing smarter energy choices and delivering
exceptional service as our retail electricity providers serve
almost 3 million residential and commercial customers throughout
the country.
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.
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160523005653/en/
NRG Energy, Inc.Media:Karen Cleeve, 609-524-4608Marijke Shugrue,
609-524-5262orInvestors:Kevin Cole, 609-524-4526Lindsey Puchyr,
609-524-4527
NRG Energy (NYSE:NRG)
Historical Stock Chart
From Mar 2024 to Apr 2024
NRG Energy (NYSE:NRG)
Historical Stock Chart
From Apr 2023 to Apr 2024