Mirant has $11.5 billion financing commitment from JPMorgan for NRG bid

New York, May 30 - Mirant Corp. said it has obtained an $11.5 billion financing commitment from JPMorgan to back its bid for NRG Energy, Inc.

Together with available cash, the $11.5 billion commitment will fund the purchase of NRG's common stock and, if necessary, its preferred stock, refinance its credit facilities, and pay for a change-of-control tender offer at 101% of par for NRG's 7¼% senior notes and 7 3/8% senior notes.

The total bid is valued at $8 billion plus the assumption of debt.

Mirant said its proposed payment of $57.16 in cash and stock per NRG share is a 33% premium to NRG's closing stock price of $43.01 on May 30. NRG shareholders can choose either cash or stock, subject to pro ration to keep the proportion at 50:50.

The transaction would be immediately accretive to the pro forma free cash flow per share of Mirant, the company said.

However Mirant noted that NRG "flatly rejected the proposal last week without engaging in any discussions."

As a result, Mirant has decided to make its proposal public.

Mirant is an Atlanta-based energy company.

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