NRG Energy, Inc. Announces Cash Tender Offer and Consent Solicitation for any and all of APX Group, Inc.’s outstanding 6.75% Senior Secured Notes due 2027
NRG Energy's subsidiary, APX Group, has launched a cash tender offer for all outstanding 6.75% senior secured notes due 2027, totaling $600 million. Alongside this, APX is soliciting consents to amend the indenture governing the notes, aiming to eliminate restrictive covenants and release collateral. The tender offer expires on November 13, 2024, with an early tender deadline of October 28, 2024. Holders tendering by the early deadline will receive the Total Consideration, including an Early Tender Payment of $50 per $1,000 principal amount. The offer is subject to conditions, including a Financing Condition. Mizuho Securities USA, Truist Securities, Citigroup Global Markets, and Goldman Sachs & Co. are acting as lead dealer managers for the tender offer and solicitation agents for the consent solicitation.
La sussidiaria di NRG Energy, il Gruppo APX, ha lanciato un offerta in contante per tutti i titoli garantiti senior del 6,75% in scadenza nel 2027, per un totale di 600 milioni di dollari. Insieme a questo, APX sta richiedendo consensi per modificare l'atto costitutivo che regola i titoli, con l'intento di eliminare le convenzioni restrittive e liberare garanzie. L'offerta scade il 13 novembre 2024, con una scadenza anticipata per l'offerta del 28 ottobre 2024. I detentori che presenteranno l'offerta entro la scadenza anticipata riceveranno il Compenso Totale, incluso un Pagamento Anticipato di $50 per ogni $1.000 di importo principale. L'offerta è soggetta a condizioni, inclusa una Condizione di Finanziamento. Mizuho Securities USA, Truist Securities, Citigroup Global Markets e Goldman Sachs & Co. stanno fungendo da principali manager dell'offerta e agenti di sollecitazione per la richiesta di consenso.
La subsidiaria de NRG Energy, APX Group, ha lanzado una oferta de efectivo para todos los bonos senior garantizados al 6.75% que vencen en 2027, por un total de 600 millones de dólares. Junto con esto, APX está solicitando consentimientos para modificar el contrato que rige los bonos, con el objetivo de eliminar los convenios restrictivos y liberar colaterales. La oferta vence el 13 de noviembre de 2024, con una fecha límite anticipada para la oferta del 28 de octubre de 2024. Los tenedores que presenten su oferta antes de la fecha límite anticipada recibirán la Consideración Total, incluyendo un Pago Anticipado de $50 por cada $1,000 de monto principal. La oferta está sujeta a condiciones, incluida una Condición de Financiamiento. Mizuho Securities USA, Truist Securities, Citigroup Global Markets y Goldman Sachs & Co. están actuando como principales gerentes de ofertas y agentes de solicitud de consentimiento.
NRG 에너지의 자회사인 APX 그룹이 현금 입찰 제안을 통해 2027년 만료되는 6.75% 고정담보 노트를 총 6억 달러 규모로 발행된 모든 노트에 대해 제안했습니다. 이에 따라 APX는 노트를 규제하는 계약 수정에 대한 동의를 요청하고 있으며, 제한적 조항을 없애고 담보를 해제하려고 합니다. 입찰 제안은 2024년 11월 13일에 종료되며, 이른 입찰 마감일은 2024년 10월 28일입니다. 이른 마감일 이전에 입찰한 보유자는 총 보상을 받을 수 있으며, 이는 1,000달러당 $50의 조기 입찰 보상이 포함됩니다. 이 제안은 자금 조달 조건을 포함하여 조건이 적용됩니다. Mizuho Securities USA, Truist Securities, Citigroup Global Markets 및 Goldman Sachs & Co.는 입찰 제안의 주요 거래 관리자로 활동하고 있으며 동의 요청의 대리인 역할을 하고 있습니다.
La filiale de NRG Energy, le Groupe APX, a lancé une offre de rachat en espèces pour toutes les obligations senior sécurisées à 6,75 % arrivant à échéance en 2027, totalisant 600 millions de dollars. Parallèlement, APX sollicite des consentements pour modifier l'acte d'obligation régissant les obligations, visant à éliminer les clauses restrictives et libérer les garanties. L'offre expire le 13 novembre 2024, avec une date limite pour une offre anticipée le 28 octobre 2024. Les détenteurs faisant une offre avant la date limite anticipée recevront la Considération Totale, y compris un Paiement Anticipé de 50 $ pour 1 000 $ de montant principal. L'offre est soumise à des conditions, y compris une Condition de Financement. Mizuho Securities USA, Truist Securities, Citigroup Global Markets et Goldman Sachs & Co. agissent en tant que principaux gestionnaires de l'offre et agents de sollicitation de consentement.
Die Tochtergesellschaft von NRG Energy, die APX Group, hat ein Bargeldangebot für alle ausstehenden 6,75 % Senior-gesicherte Anleihen mit Fälligkeit 2027 in Höhe von insgesamt 600 Millionen Dollar gestartet. Parallel dazu bittet APX um die Zustimmung zur Änderung des Schuldverschreibungsgesetzes, um einschränkende Verhältnisse aufzuheben und Sicherheiten freizugeben. Das Angebot endet am 13. November 2024, mit einer Frist für das frühe Angebot am 28. Oktober 2024. Anleger, die bis zur frühen Frist anbieten, erhalten die Gesamtsumme, einschließlich einer frühen Angebotszahlung von 50 USD pro 1.000 USD Nennbetrag. Das Angebot unterliegt Bedingungen, einschließlich einer Finanzierungsbedingung. Mizuho Securities USA, Truist Securities, Citigroup Global Markets und Goldman Sachs & Co. fungieren als Hauptverwalter für das Angebot und als Zustimmung solcher Agenten.
- Potential reduction in outstanding debt of $600 million
- Opportunity to eliminate restrictive covenants and release collateral, providing more financial flexibility
- Early tender incentive of $50 per $1,000 principal amount for noteholders
- Potential increase in short-term cash outflow to fund the tender offer
- Possible reduction in available secured debt capacity if collateral is released
Insights
NRG Energy's subsidiary APX Group's tender offer for
The consent solicitation to amend the indenture and release collateral suggests NRG is seeking greater financial flexibility. If successful, this could improve NRG's debt profile and reduce restrictions on future operations. However, the removal of covenants and collateral may be viewed negatively by some investors as it reduces their protection.
The financing condition attached to the offer indicates NRG likely plans to replace this debt with new financing. Investors should watch for announcements of new debt issuance or other capital raising activities. Overall, this move could lead to lower interest expenses and improved financial metrics for NRG, but the ultimate impact will depend on the participation rate and terms of any new financing.
In conjunction with the Tender Offer, APX is also soliciting consents (the “Consent Solicitation”) to adopt certain proposed amendments to the indenture governing the Notes to (1) eliminate substantially all of the restrictive covenants and certain affirmative covenants and events of default and related provisions therein (the “Proposed Amendments”) and (2) release all of the collateral securing the Notes (the “Collateral Release”). The Proposed Amendments require the consent of holders of a majority in aggregate principal amount of the outstanding Notes (the “Covenant Requisite Consent”) and the Collateral Release requires the consent of holders of at least 662/3% in aggregate principal amount of the outstanding Notes (the “Collateral Release Requisite Consent,” and together with the Covenant Requisite Consent, the “Requisite Consents”).
The Tender Offer and Consent Solicitation are being made pursuant to the Offer to Purchase and Consent Solicitation Statement, dated October 15, 2024 (the “Offer to Purchase and Consent Solicitation Statement”).
Certain information regarding the Notes and the terms of the Tender Offer is summarized in the table below.
Title of Security |
CUSIP/ISIN Numbers |
Principal
|
UST Reference Security |
Bloomberg Reference Page(1) |
Fixed Spread (bps) |
Early Tender Payment(2)(3) |
|
CUSIP: 00213M AV6 (144A) and U0385P AN6
|
|
|
FIT3 |
+50 |
|
(1) The page on Bloomberg from which the dealer managers will quote the bid side price of the
(2) Per
(3) Included in the Total Consideration (as defined below) for Notes tendered and accepted for purchase on or prior to the Early Tender Deadline (as defined below).
The Tender Offer is scheduled to expire at 5:00 p.m.,
In addition, APX will pay accrued and unpaid interest on the principal amount of Notes accepted for purchase from the most recent interest payment date on the Notes to, but not including, the applicable Settlement Date (as defined below). Validly tendered Notes may be validly withdrawn at any time prior to the Early Tender Deadline but not thereafter, except as may be required by applicable law.
The Total Consideration payable by APX for the Notes (the “Total Consideration”) will be a price per
The settlement date for the Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline and accepted for purchase is expected to be within three business days following the Early Tender Deadline or as promptly as practicable thereafter, unless extended or earlier terminated (the “Early Settlement Date”). The settlement date for the Notes validly tendered after the Early Tender Deadline but at or prior to the Expiration Time and accepted for purchase is expected to be within three business days following the Expiration Time or as promptly as practicable thereafter, unless extended or earlier terminated (the “Final Settlement Date,” and along with the Early Settlement Date, each a “Settlement Date”).
Assuming receipt of the Requisite Consents, APX, the guarantors party thereto, the trustee and collateral agent expect to execute and deliver a supplemental indenture to the indenture governing the Notes. The supplemental indenture will become effective immediately upon execution but (1) the Proposed Amendments will not become operative until we accept for purchase the Notes satisfying the Requisite Consents in the Tender Offer and (2) the Collateral Release will not become operative until we accept for purchase the Notes satisfying the Collateral Release Requisite Consent in the Tender Offer.
APX’s obligation to purchase Notes in the Tender Offer is conditioned on the satisfaction or waiver of a number of conditions as described in the Offer to Purchase and Consent Solicitation Statement, including the Financing Condition (as defined in the Offer to Purchase and Consent Solicitation Statement). The Tender Offer is not conditioned upon the tender of any minimum principal amount of Notes. In the event of a termination of the Tender Offer, neither the applicable consideration will be paid or become payable to the holders of the Notes, and the Notes tendered pursuant to the Tender Offer will be promptly returned to the tendering holders. APX has the right, in its sole discretion, to not accept any tenders of Notes for any reason and to amend or terminate the Tender Offer at any time. NRG and APX currently do not intend to redeem in the near future any Notes remaining after the settlement of the Tender Offer.
Copies of the Offer to Purchase and Consent Solicitation Statement are available to holders of the Notes from D.F. King & Co., Inc., the tender agent and information agent for the Tender Offer (the “Tender and Information Agent”). Requests for copies of the Offer to Purchase and Consent Solicitation Statement should be directed to the Tender and Information Agent at (800) 949-2583 (toll free) and (212) 269-5550 (banks and brokers) or by e-mail to nrg@dfking.com. APX has engaged Mizuho Securities
None of APX, the dealer managers, the Tender and Information Agent, the trustee for the Notes or any of their respective affiliates is making any recommendation as to whether holders should or should not tender any Notes in response to the Tender Offer or expressing any opinion as to whether the terms of the Tender Offer are fair to any holder. Holders of the Notes must make their own decision as to whether to tender any of their Notes and, if so, the principal amount of Notes to tender. Please refer to the Offer to Purchase and Consent Solicitation Statement for a description of the offer terms, conditions, disclaimers and other information applicable to the Tender Offer and Consent Solicitation.
This press release does not constitute an offer to purchase or the solicitation of an offer to sell any securities. The Tender Offer is being made solely by means of the Offer to Purchase and Consent Solicitation Statement. APX is making the Tender Offer only in those jurisdictions where it is legal to do so. The Tender Offer is not being made to holders of the Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.
About NRG
NRG Energy is a leading energy and home services company powered by people and our passion for a smarter, cleaner, and more connected future. A Fortune 500 company operating in
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to certain risks, uncertainties and assumptions and typically can be identified by the use of words such as “expect,” “estimate,” “should,” “anticipate,” “forecast,” “plan,” “guidance,” “outlook,” “believe” and similar terms. Although NRG believes that the expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially.
NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this news release 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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Media
Chevalier Gray
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Investors
Brendan Mulhern
609.524.4767
Source: NRG Energy, Inc.
FAQ
What is the principal amount of APX Group's 6.75% Senior Secured Notes due 2027 that NRG Energy (NRG) is offering to purchase?
When is the expiration date for NRG Energy's (NRG) tender offer for APX Group's notes?
What is the Early Tender Payment offered by NRG Energy (NRG) in the tender offer for APX Group's notes?
What are the proposed amendments to the indenture governing APX Group's notes in NRG Energy's (NRG) consent solicitation?
