NRG Energy, Inc. Announces Pricing of Tender Offer for any and all of 6.75% Senior Secured Notes due 2027 issued by APX Group, Inc.
NRG Energy (NYSE:NRG) has announced pricing terms for its cash tender offer to purchase any and all outstanding 6.75% senior secured notes due 2027 issued by its wholly-owned subsidiary APX Group. The total consideration is $1,004.11 per $1,000 principal amount, including an early tender payment of $50.00, for notes tendered by October 28, 2024. The offer was priced using a fixed spread of 50 bps over the reference yield of 4.747%. Holders who tender after the early deadline but before November 13, 2024, will receive the total consideration less the early tender payment.
NRG Energy (NYSE:NRG) ha annunciato i termini di prezzo per la propria offerta di acquisto in contante per l'acquisto di tutte le note senior garantite al 6,75% in scadenza 2027 emesse dalla sua controllata al 100% APX Group. La considerazione totale è di $1.004,11 per $1.000 di valore nominale, inclusa un pagamento anticipato di $50,00, per le note presentate entro il 28 ottobre 2024. L'offerta è stata determinata utilizzando un differenziale fisso di 50 punti base rispetto al rendimento di riferimento del 4,747%. I detentori che presenteranno le loro note dopo la scadenza anticipata, ma prima del 13 novembre 2024, riceveranno la considerazione totale meno il pagamento anticipato.
NRG Energy (NYSE:NRG) ha anunciado los términos de precios para su oferta de adquisición en efectivo para comprar todas las notas senior garantizadas al 6,75% con vencimiento en 2027 emitidas por su subsidiaria al 100% APX Group. La consideración total es de $1,004.11 por $1,000 de monto principal, incluyendo un pago por presentación anticipada de $50.00, para las notas presentadas antes del 28 de octubre de 2024. La oferta se fijó utilizando un diferencial fijo de 50 puntos básicos sobre el rendimiento de referencia del 4.747%. Los tenedores que presenten después de la fecha límite anticipada pero antes del 13 de noviembre de 2024, recibirán la consideración total menos el pago por presentación anticipada.
NRG Energy (NYSE:NRG)는 자회사 APX Group이 발행한 모든 6.75% 만기 2027년의 고정 수익 채권에 대한 현금 입찰 제안의 가격 조건을 발표했습니다. 총 고려 금액은 $1,004.11, $1,000 원금에 대해 $50.00의 조기 제출 보너스가 포함되어 있으며, 2024년 10월 28일까지 제출된 채권에 해당합니다. 이 제안은 기준 수익률 4.747%에 대해 50bp의 고정 스프레드를 사용하여 가격이 책정되었습니다. 조기 마감일 이후이지만 2024년 11월 13일 이전에 제출하는 보유자는 조기 제출 보너스 미만의 총 고려 금액을 받게 됩니다.
NRG Energy (NYSE:NRG) a annoncé les modalités de prix de son offre de rachat en espèces pour l'achat de toutes les obligations sécurisées seniors à 6,75% arrivant à échéance en 2027 émises par sa filiale à 100% APX Group. La contrepartie totale est de $1.004,11 par $1.000 de montant principal, incluant un paiement anticipé de $50,00, pour les obligations présentées d'ici le 28 octobre 2024. L'offre a été fixée en utilisant un spread fixe de 50 points de base par rapport au rendement de référence de 4,747%. Les détenteurs qui présenteront après la date limite anticipée mais avant le 13 novembre 2024 recevront la contrepartie totale moins le paiement anticipé.
NRG Energy (NYSE:NRG) hat die Preiskonditionen für sein Barangebot zur Übernahme aller Senior Secured Notes mit 6,75% fällig 2027, die von seiner Tochtergesellschaft APX Group ausgegeben wurden, bekannt gegeben. Die Gesamtabfindung beträgt $1.004,11 pro $1.000 Nennbetrag, einschließlich eines frühen Tender-Zahlung von $50,00, für die bis zum 28. Oktober 2024 eingereichten Anleihen. Das Angebot wurde mit einem festen Spread von 50 Basispunkten über der Referenzrendite von 4,747% bepreist. Inhaber, die nach der frühen Frist, aber vor dem 13. November 2024 tendern, erhalten die Gesamtabfindung abzüglich der frühen Tender-Zahlung.
- Company is taking steps to manage its debt structure through early redemption
- Early tender premium of $50 per $1,000 principal amount incentivizes participation
- Company will need to use cash resources to fund the note repurchase
- Premium payment above principal amount increases the cost of debt retirement
Insights
This tender offer for APX Group's
The spread of
This transaction suggests NRG is actively managing its capital structure following the APX acquisition, potentially looking to refinance at more favorable terms or reduce overall debt load. The involvement of multiple major investment banks as dealer managers indicates the significance of this liability management exercise.
The total consideration to be paid for the Notes accepted for purchase was determined by reference to (i) the fixed spread for the Notes set forth in the table below and (ii) the bid side yield to maturity (the “Reference Yield”) of the
The following table sets forth the pricing information for the Tender Offer:
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Title of
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CUSIP/ISIN
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Principal
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UST
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Reference
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Fixed
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Total
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CUSIP: 00213M AV6
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+50 |
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(1) |
Includes an early tender payment of |
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(2) |
Per |
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 Early Settlement Date or the Final Settlement Date (as defined in the Offer to Purchase and Consent Solicitation Statement), as applicable.
Holders of Notes who have not yet tendered their Notes have until 5:00 p.m.,
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. 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 related 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 total consideration NRG Energy is offering for the 2027 notes?
When does NRG Energy's tender offer expire?
What is the early tender deadline for NRG Energy's note repurchase?
What is the principal amount of APX Group notes outstanding for NRG's tender offer?
