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NRG Energy launching $700M note offering to fund $1B of cash tender offers

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NRG Energy launching $700M note offering to fund $1B of cash tender offers

NRG Energy Inc.plans to issue $700 million of debt to institutional investors to help extinguishexisting senior notes.

The new senior notes will be due 2026 and will be guaranteedby certain of NRG Energy's subsidiaries. The notes will be treated as senior unsecuredobligations of the company.

The proceeds, together with cash on hand, would result in anaggregate payment amount for exiting notes of up to $1.0 billion, NRG said May 9.It concurrently launched a tender offer to repurchase the senior notes.

The tender offer covers repurchases of up to $300 million ofthe company's 7.625% notes due 2018, $250 million of 8.250% notes due 2020 and $250million of 7.875% notes due 2021 under fixed-price offers.

NRG Energy is offering $1,090 for the 7.625% notes, $1,043.75for the 8.25% notes and $1,041.88 for the 7.875% notes per every $1,000 principalamount of notes accepted for repurchase, including $30 for early participants.

The company also plans to repurchase $200 million worth of anyof its 6.250% notes due 2022, 6.625% notes due 2023 or 6.250% notes due 2024 undera Dutch auction offer.

NRG Energy is offering $975 to $995 for the 2022 notes, $977.50to $997.50 for the 2023 notes and $970 to $990 for the 2024 notes per every $1,000principal amount of notes accepted for repurchase, including $30 for early bid participation.

Notes need to be tendered prior to 5 p.m. ET on May 20 to beconsidered for the early participation offer. The offers will expire at 11:59 p.m.ET on June 6.

In a same-day release, NRGYield Inc. said it has changed the date on which it intends to filea Form S-3 registration statement for the resale of its class C common stock.

The stocks may be issued upon conversion of NRG Yield's outstanding3.25% senior notes due 2020, which were sold June 29, 2015, to institutional buyers.

NRG Yield will make the filing by June 16.