NRG Announces Pricing of $1.9 Billion Term Loan B Facility Due 2023
PRINCETON, N.J.--(BUSINESS WIRE)--Jun. 16, 2016--
NRG Energy, Inc. (NYSE:NRG) (the “Company”) announced today that it has
priced its proposed $1.9 billion term loan B facility. The term loans
will be issued at a price equal to 99.50% of their face value, bear
interest at a rate equal to LIBOR plus 2.75% (with LIBOR not less than
0.75%) and mature seven years from the date of issuance. The closing of
the proposed new term loan B facility is expected to occur on or before
June 30, 2016 and is subject to customary closing conditions. Proceeds
from the financing along with cash on hand will be used to replace the
Company’s existing term loan B facility and pay for transaction costs.
In connection with the term loan B facility, the Company also expects to
refinance and extend its existing revolving credit facility until 2021.
Once completed, the new term loan B and revolving credit facility, when
taken together with the tender offer completed in June 2016 and open
market repurchases, are expected to significantly reduce the outstanding
balance of NRG-level debt due in 2018.
NRG is the leading integrated power company in the U.S., built on the
strength of the nation’s largest and most diverse competitive electric
generation portfolio and leading retail electricity platform. A Fortune
200 company, NRG creates value through best in class operations,
reliable and efficient electric generation, and a retail platform
serving residential and commercial businesses. Working with electricity
customers, large and small, we continually innovate, embrace and
implement sustainable solutions for producing and managing energy. We
aim to be pioneers in developing smarter energy choices and delivering
exceptional service as our retail electricity providers serve almost 3
million residential and commercial customers throughout the country.
This communication contains forward-looking statements that may state
NRG’s or its management’s intentions, beliefs, expectations or
predictions for the future. Such forward-looking statements are subject
to certain risks, uncertainties and assumptions, and typically can be
identified by the use of words such as “will,” “expect,” “estimate,”
“anticipate,” “forecast,” “plan,” “believe” and similar terms. Although
NRG believes that its expectations are reasonable, it can give no
assurance that these expectations will prove to have been correct, and
actual results may vary materially. Factors that could cause actual
results to differ materially from those contemplated above include,
among others, risks and uncertainties related to the capital markets
The foregoing review of factors that could cause NRG’s actual results to
differ materially from those contemplated in the forward-looking
statements included herein should be considered in connection with
information regarding risks and uncertainties that may affect NRG’s
future results included in NRG’s filings with the SEC at www.sec.gov.
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Source: NRG Energy, Inc.
NRG Energy, Inc.
Marijke Shugrue, 609-524-5262
L. Cole, CFA, 609-524-4526
Lindsey Puchyr, 609-524-4527