NRG Energy, Inc. Announces Offering of Senior Notes due 2033 and Senior Notes due 2034
NRG Energy, Inc. (NYSE:NRG) has announced an offering of $1,500 million in aggregate principal amount of senior unsecured notes in two tranches: senior notes due 2033 and senior notes due 2034. The notes will be guaranteed by NRG's current and future subsidiaries that guarantee indebtedness under its credit agreement.
NRG plans to use the net proceeds from this offering, along with proceeds from a proposed new term loan B of $450 million and cash on hand, to:
- Pay the tender price for APX Group, Inc.'s 6.75% Senior Secured Notes due 2027
- Repay APX secured term loans (approximately $1.3 billion)
- Pay estimated transaction fees, expenses, and premiums
- Refinance outstanding debt and for general corporate purposes
The notes are being offered only to qualified institutional buyers and non-U.S. persons in compliance with Securities Act regulations.
NRG Energy, Inc. (NYSE:NRG) ha annunciato un'offerta di 1.500 milioni di dollari in totale di note senior non garantite in due tranche: note senior in scadenza nel 2033 e note senior in scadenza nel 2034. Le note saranno garantite dalle attuali e future filiali di NRG che garantiscono l'indebitamento ai sensi del suo contratto di credito.
NRG prevede di utilizzare il ricavato netto da questa offerta, insieme ai proventi di un proposto nuovo prestito B di 450 milioni di dollari e ai contanti disponibili, per:
- Pagare il prezzo di offerta per le note senior garantite 6.75% in scadenza nel 2027 di APX Group, Inc.
- Rimborsare i prestiti garantiti da APX (circa 1,3 miliardi di dollari)
- Pagare le stime delle spese transazionali, delle spese e dei premi
- Rifinanziare il debito in scadenza e per scopi corporate generali
Le note sono offerte solo a compratori istituzionali qualificati e a persone non statunitensi in conformità con le normative della Securities Act.
NRG Energy, Inc. (NYSE:NRG) ha anunciado una oferta de 1,500 millones de dólares en total de notas senior no garantizadas en dos tramos: notas senior que vencen en 2033 y notas senior que vencen en 2034. Las notas estarán garantizadas por las subsidiarias actuales y futuras de NRG que garantizan la deuda bajo su acuerdo de crédito.
NRG planea usar los ingresos netos de esta oferta, junto con los ingresos de un propuesto nuevo préstamo a plazo B de 450 millones de dólares y efectivo disponible, para:
- Pagar el precio de compra por las notas senior garantizadas del 6.75% que vencen en 2027 de APX Group, Inc.
- Reembolsar los préstamos a plazo garantizados de APX (aproximadamente 1.3 mil millones de dólares)
- Pagar las tarifas estimadas de transacción, gastos y primas
- Refinanciar la deuda existente y para propósitos corporativos generales
Las notas se ofrecen solo a compradores institucionales calificados y personas no estadounidenses en cumplimiento de las regulaciones de la Securities Act.
NRG Energy, Inc. (NYSE:NRG)는 15억 달러의 총 원금액의 선순위 무담보 노트를 두 트랜치로 나누어 제공한다고 발표했습니다: 2033년 만기 선순위 노트와 2034년 만기 선순위 노트. 이 노트들은 NRG의 현재 및 미래의 자회사가 보장하며, 채무는 신용 계약을 통해 보장됩니다.
NRG는 이번 제공에서 발생한 순수익과 제안된 4억 5천만 달러의 새로운 텀 론 B의 수익, 그리고 보유 현금을 사용하여:
- APX Group, Inc.의 2027년 만기 6.75% 선순위 담보 노트의 인수 가격을 지불
- APX의 담보 텀 론을 상환(약 13억 달러)
- 예상 거래 수수료, 비용 및 프리미엄 지불
- 미지급 부채를 재융자하고 일반 기업 목적에 사용
이 노트는 자격을 갖춘 기관 투자자와 미국 외의 개인에게만 제공됩니다. 이들은 증권법 규정에 따라 Compliance하고 있습니다.
NRG Energy, Inc. (NYSE:NRG) a annoncé une offre de 1,5 milliard de dollars en montant principal total de billets senior non garantis en deux tranches : des billets senior arrivant à échéance en 2033 et des billets senior arrivant à échéance en 2034. Ces billets seront garantis par les filiales actuelles et futures de NRG qui garantissent l'endettement dans le cadre de son contrat de crédit.
NRG prévoit d'utiliser le produit net de cette offre, associé aux recettes d'un nouveau prêt à terme B de 450 millions de dollars proposé et à des liquidités disponibles, pour :
- Payer le prix d'offre des billets sécurisés seniors de 6,75 % d'APX Group, Inc. arrivant à échéance en 2027
- Rembourser les prêts à terme garantis d'APX (environ 1,3 milliard de dollars)
- Payer les frais de transaction, dépenses et primes estimées
- Refinancer la dette en cours et à des fins corporatives générales
Les billets sont offerts uniquement à des acheteurs institutionnels qualifiés et à des personnes non américaines en conformité avec les réglementations de la Securities Act.
NRG Energy, Inc. (NYSE:NRG) hat ein Angebot über 1.500 Millionen Dollar an ungesicherten Senior-Anleihen in zwei Tranchen angekündigt: Senior-Anleihen mit Fälligkeit 2033 und Senior-Anleihen mit Fälligkeit 2034. Die Anleihen werden von den aktuellen und zukünftigen Tochtergesellschaften von NRG garantiert, die Schulden im Rahmen seines Kreditvertrags garantieren.
NRG plant, die Nettoerlöse aus diesem Angebot, zusammen mit den Erlösen aus einem vorgeschlagenen neuen Terminkredit B von 450 Millionen Dollar und bereits vorhandenen Bargeld, zu verwenden, um:
- Den Tenderpreis für die 6,75% Senior Secured Notes von APX Group, Inc., die 2027 fällig werden, zu zahlen
- APX gesicherte Terminkredite (ca. 1,3 Milliarden Dollar) zurückzuzahlen
- Geschätzte Transaktionsgebühren, Aufwendungen und Prämien zu zahlen
- Ausstehende Schulden zu refinanzieren und für allgemeine Unternehmenszwecke zu verwenden
Die Anleihen werden nur an qualifizierte institutionelle Käufer und nicht in den USA ansässige Personen im Einklang mit den Vorschriften des Securities Act angeboten.
- Raising $1,500 million through senior unsecured notes offering
- Securing additional $450 million through proposed new term loan B
- Refinancing existing debt, potentially improving financial structure
- Demonstrating access to capital markets for funding
- Increasing overall debt burden
- Potential for higher interest expenses
- Risk of dilution for existing shareholders
Insights
NRG Energy's announcement of a
- The company is effectively refinancing higher-cost debt with potentially lower-cost long-term debt, which could improve its interest expense profile.
- By repaying secured debt with unsecured notes, NRG is likely freeing up assets that were previously used as collateral, potentially increasing financial flexibility.
- The tender offer for APX's 6.75% Senior Secured Notes due 2027 suggests NRG is proactively managing its maturity profile and potentially reducing near-term refinancing risk.
However, investors should note that while this refinancing may improve NRG's debt structure, it does not necessarily reduce the overall debt burden. The impact on the company's credit metrics and future cash flows will depend on the interest rates of the new notes compared to the debt being replaced. The market's reception to this offering will be crucial, as it will indicate investor confidence in NRG's long-term financial health and strategy.
The structure of NRG Energy's notes offering raises several legal considerations:
- The offering is to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, which exempts the company from SEC registration requirements. This approach allows for a faster and less costly issuance process but restricts the potential investor base.
- The notes are being issued as senior unsecured obligations, which typically rank below secured debt in the event of bankruptcy. However, the subsidiary guarantees provide additional protection for noteholders.
- NRG's decision not to file a registration statement for resale suggests they're prioritizing speed and cost-efficiency over secondary market liquidity for these notes.
From a compliance standpoint, NRG must ensure strict adherence to the private placement rules to maintain the exemption from registration. The company's explicit statement about not intending to file a registration statement underscores their commitment to this path. Investors should be aware that these unregistered securities may have liquidity in the secondary market.
NRG intends to use the net proceeds from this offering, together with the net proceeds of its proposed new term loan B in an aggregate principal amount of
The Notes and related guarantees are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and, outside
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241016898900/en/
Media
Chevalier Gray
832.763.3454
Investors
Brendan Mulhern
609.524.4767
Source: NRG Energy, Inc.
FAQ
What is the size of NRG Energy's (NRG) new senior notes offering?
How does NRG Energy (NRG) plan to use the proceeds from the senior notes offering?
What is the proposed amount of NRG Energy's (NRG) new term loan B?
Who is eligible to purchase the senior notes offered by NRG Energy (NRG)?
