NRG Announces Pricing of $1.9 Billion Term Loan B Facility Due 2023
June 16 2016 - 7:00AM
Business Wire
NRG Energy, Inc. (NYSE:NRG) (the “Company”) announced today that
it has priced its proposed $1.9 billion term loan B
facility. The term loans will be issued at a price equal to
99.50% of their face value, bear interest at a rate equal to LIBOR
plus 2.75% (with LIBOR not less than 0.75%) and mature seven years
from the date of issuance. The closing of the proposed new term
loan B facility is expected to occur on or before June 30, 2016 and
is subject to customary closing conditions. Proceeds from the
financing along with cash on hand will be used to replace the
Company’s existing term loan B facility and pay for transaction
costs.
In connection with the term loan B facility, the Company also
expects to refinance and extend its existing revolving credit
facility until 2021.
Once completed, the new term loan B and revolving credit
facility, when taken together with the tender offer completed in
June 2016 and open market repurchases, are expected to
significantly reduce the outstanding balance of NRG-level debt due
in 2018.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160616005345/en/
NRG Energy, Inc.Media:Karen Cleeve,
609-524-4608Marijke Shugrue, 609-524-5262orInvestors:Kevin
L. Cole, CFA, 609-524-4526Lindsey Puchyr, 609-524-4527
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