RRI Energy increases size of tender for 6¾% notes, revenue bonds

New York, Oct. 5 - RRI Energy, Inc. said it is increasing to $200 million the size of its cash tender offer for its 6 ¾% senior secured notes due 2014 and five series of Reliant Energy Seward, LLC Project facilities revenue bonds issued through the Pennsylvania Economic Development Financing Authority.

The company previously said it would buy up to $150 million principal amount of the debt.

RRI Energy also extended the early participation deadline to midnight ET on Oct. 19 from 5 p.m. ET on Oct. 5. The early deadline now coincides with the tender expiration.

A of 5 p.m. ET on Oct. 5, holders had tendered $129.647 million of notes and bonds.

As announced on Sept. 21, the municipal bonds covered by the offer are the $150 million series 2001A, the $75 million series 2002A, the $75 million series 2002B, the $100 million series 2003A and the $100 million series 2004A.

RRI Energy said at the time of its original announcement that it may increase the amount to be bought to up to $250 million.

The price to be paid will be set by a modified Dutch auction.

For the $437.239 million 6¾% notes, bids to sell will be accepted in the range of $980 to $1,020 per $1,000 principal amount, including the $20 early participation payment.

For the municipal bonds, the acceptable range is $960 to $1,000 per $1,000, again including a $20 early participation payment.

Before the extension, the early participation payment will only be made to those who tender by 5 p.m. ET on Oct. 5.

The tender ends at midnight ET on Oct. 19.

RRI will accept bids from lowest to highest until it reaches its target amount to purchase. All holders of either the 6¾% or the municipal bonds will receive the same price.

In addition, RRI will pay accrued interest up to but excluding the settlement date.

Deutsche Bank Securities Inc. is dealer manager (800 553-2826 or 212 250-7772).

Global Bondholder Services Corp. is information agent and depositary (banks and brokers call 212 430-3774, others call 866 952-2200).

RRI Energy is a Houston-based provider of electricity and energy services.

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