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NRG tender offer for 8½%, 7 5/8% notes oversubscribed at early deadline
By Angela McDaniels
Tacoma, Wash., Jan. 27 - NRG Energy, Inc. announced the early results of its tender offer for up to $400 million of its $607,068,000 of 8½% senior notes due 2019 and $800 million 7 5/8% senior notes due 2019.
Holders had tendered $307,695,000 principal amount, or 50.7%, of the 8½% notes and $191,742,000 principal amount, or 24.0%, of the 7 5/8% notes as of 5 p.m. ET on Jan. 24, the early tender date.
The offer began on Jan. 10 and will end at midnight ET on Feb. 7. The settlement date is expected to be Feb. 10, according to a company news release.
For each $1,000 principal amount, the company is offering $1,070 for the 8½% notes and $1,055 for the 7 5/8% notes. These payments include an early tender payment of $30.00 for each note tendered by the early tender date.
The 8½% notes have an acceptance priority level of 1, and the 7 5/8% notes have an acceptance priority level of 2.
NRG said it will make adjustments to avoid purchases of the notes in principal amounts other than integral multiples of $5,000 for the 8½% notes and $1,000 for the 7 5/8% notes. If the principal amount of notes to be returned to a holder as a result of proration would result in less than the minimum denomination being returned, NRG will return to that holder an additional principal amount of notes as may be required to meet such minimum denomination.
The company priced $1.1 billion of 6¼% senior notes due 2022 at par on Jan. 10. It will use $400 million of the proceeds from the new notes to fund the tender offer, and the remaining portion of the total consideration will be paid with cash on hand.
The dealer manager is Barclays (800 438-3242 or 212 528-7581). The information agent is Global Bondholder Services Corp. (866 470-4500 or 212 430-3774).
NRG Energy is a power generating company based in Princeton, N.J.
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