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HOUSTON - NRG Energy, Inc. (NYSE:NRG), a $32.4 billion market cap utility company whose stock has surged nearly 88% year-to-date, announced Wednesday the commencement of concurrent offerings of senior secured first lien notes and senior unsecured notes to partially fund its previously announced acquisition of Lightning Power, LLC and related entities. According to InvestingPro analysis, NRG maintains a GOOD financial health score despite trading above its Fair Value.
The offerings consist of senior secured first lien notes due 2030 and 2035, as well as senior unsecured notes due 2034 and 2036. The secured notes will be backed by a first priority security interest in the same collateral pledged under NRG’s credit agreement.
NRG plans to use a portion of the proceeds to repay in full its $500 million aggregate principal amount of 2.000% senior secured first lien notes maturing on December 2, 2025.
The notes and related guarantees will be guaranteed by NRG’s current and future wholly-owned U.S. subsidiaries that guarantee the term loans under the company’s credit agreement.
The securities are being offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to non-U.S. persons in compliance with Regulation S. The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.
The company noted that the secured notes offering is not conditioned upon completion of the unsecured notes offering or vice versa.
According to the press release statement, NRG does not intend to file a registration statement for the resale of the notes.
In other recent news, NRG Energy has raised its financial guidance for 2025, citing strong performance across all segments and favorable weather conditions in the first quarter. The company increased its Adjusted Net Income guidance to a range of $1,470-$1,590 million, up from a previous range of $1,330-$1,530 million. Additionally, NRG Energy lifted its adjusted earnings per share guidance to $7.55-$8.15, marking a $0.60 improvement at the midpoint. Meanwhile, NRG Energy has announced a strategic agreement with LandBridge Company for a potential data center site in Reeves County, Texas. This agreement includes plans for a 1,100 MW natural gas power generation facility, with operations potentially starting by the end of 2029. In analyst coverage, Scotiabank has initiated NRG Energy with a Sector Outperform rating and a $212 price target, highlighting its attractive valuation. Similarly, Melius Research has initiated coverage with a Buy rating, citing NRG’s integrated generation and retail model. Furthermore, NRG Energy has added a dual listing on the newly launched NYSE Texas, while maintaining its primary listing on the New York Stock Exchange.
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