NRG Prices $1.9 Bln Term Loan B Facility Due 2023 - Quick Facts

(RTTNews) - NRG Energy, Inc. (NRG) announced Thursday that it has priced its proposed $1.9 billion term loan B facility. The term loans will be issued at a price equal to 99.50% of their face value, bear interest at a rate equal to LIBOR plus 2.75% (with LIBOR not less than 0.75%) and mature seven years from the date of issuance.

The company said the closing of the proposed new term loan B facility is expected to occur on or before June 30, subject to customary closing conditions.

Proceeds from the financing along with cash on hand will be used to replace the company's existing term loan B facility and pay for transaction costs.

In connection with the term loan B facility, the company also expects to refinance and extend its existing revolving credit facility until 2021.

NRG Energy noted that once completed, the new term loan B and revolving credit facility, together with the tender offer completed in June 2016 and open market repurchases, would significantly reduce the outstanding balance of NRG-level debt due in 2018.