GenOn to make $362.51 million claim settlement payment, pay off notes

By Caroline Salls

Pittsburgh, June 4 – GenOn Energy, Inc. and GenOn Americas Generation, LLC (GAG) elected to make a $362.51 million payment on June 5 on an administrative claim set in a GAG settlement approved by the U.S. Bankruptcy Court for the Southern District of Texas in February, according to an 8-K filed Monday with the Securities and Exchange Commission.

Under the payment, holders of GAG’s 8½% senior notes due 2021 will receive $191.44 million, representing $514.345301 per $1,000 principal amount of notes, and holders of GAG’s 9 1/8% senior notes due 2031 will receive $171.06 million, representing $514.345299 per $1,000 principal amount.

GenOn said this payment will pay the entire remaining principal balance of the underlying GAG notes.

In addition, the company said GenOn indirect wholly owned subsidiaries NRG Wholesale Generation LP and RRI Energy Services, LLC completed their sale to Kestrel Acquisition, LLC of all assets owned, used or held for use primarily in the operation by NR Wholesale and its affiliates of the Hunterstown CCGT facility.

RRI assigned some third-party gas interconnection contracts to the buyer.

The closing purchase price was $498 million, and that amount is subject to post-closing adjustment for working capital as of the closing date.

The company said the closing purchase price was funded by a combination of equity investments from affiliates of Platinum Equity Capital Partners, IV, LP, the indirect parent of the buyer, and proceeds from third-party debt financing.

GenOn said the court approved modification of its Chapter 11 plan and confirmed that the purchase agreement constitutes a third-party sale transaction for purposes of the plan.

Holders of more than 50% of the GenOn notes support and have consented to the sale transaction, the 8-K said.

GenOn, a Princeton, N.J.-based power producer, filed for bankruptcy on June 14, 2017. The Chapter 11 case number is 17-33695.

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