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NRG Energy reprices $1.87B term loan to reduce interest margin

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NRG Energy reprices $1.87B term loan to reduce interest margin

NRG Energy Inc. repriced its $1.87 billion term loan B due June 2023 to reduce the interest rate margin on the loan by 50 basis points to LIBOR +175 basis points and to reduce the LIBOR floor to 0.00%.

The repricing will result to interest savings for the New Jersey-based integrated power company of about $47 million over the remaining life of the loan, according to a March 21 press release. The company expects annualized interest savings of about $9 million.

"The transaction is leverage neutral and enhances free cash flow before growth via annual cash interest savings," the company said.

NRG previously repriced the loan in January 2017 when it lowered the interest rate margin by 50 basis points to LIBOR +225 basis points.