NRG Energy reduces debt commitment for GenOn merger to $1 billion

By Sara Rosenberg

New York, Oct. 25 - NRG Energy Inc. downsized its senior secured term loan commitment with Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. to $1 billion from $1.6 billion, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The term loan will be used to fund change-of-control offers and NRG debt offers, if necessary, in connection with the stock-for-stock tax-free merger transaction with GenOn Energy Inc.

Under the merger, GenOn shareholders will receive 0.1216 of a share of NRG common stock in exchange for each GenOn share.

The transaction is expected to close in the first quarter of 2013, subject to regulatory and other approvals.

Once the transaction is completed, NRG shareholders will own 71% of the combined company and GenOn shareholders will own 29%.

NRG Energy is a Princeton, N.J.-based wholesale power generation company. GenOn is a Houston-based power producer.

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