NRG Energy Enters Into Plan Sponsor Agreement To Acquire EME - Quick Facts

(RTTNews) - NRG Energy, Inc. (NRG) announced that it has entered into a plan sponsor agreement with Edison Mission Energy or EME, certain of EME's subsidiaries, the unsecured creditors committee, certain of EME's unsecured noteholders, and the parties to the Powerton and Joliet sale leaseback transaction to acquire substantially all of the assets of EME, including its equity interests in certain of its subsidiaries, for an aggregate purchase price of $2.6 million.

The company said the aggregate purchase price, which is subject to certain post-closing adjustments, will consist of about 12.7 million shares of NRG common stock with the balance to be paid in cash on hand. In connection with the transaction, NRG will also assume non-recourse debt of approximately $1.5 million, of which $273 million is associated with assets designated as Non-Core Assets pursuant to the asset purchase agreement.

EME and NRG have entered into an asset purchase agreement, dated October 18, 2013.

The company noted that the assets to be acquired include EME's generation portfolio, which consists of nearly 8,000 net MW of generation capacity located throughout the US, 1,700 MW of wind capacity, 1,600 MW of gas-fired capacity, 4,300 MW of coal-fired capacity, 400 MW of oil and waste coal-fired capacity and Edison Mission Marketing and Trading, a proprietary trading and asset management platform.