NRG Energy issues $4.9 billion in senior notes to support acquisitions and debt repayment

NRG Energy, Inc. (NYSE:NRG), a $32.4 billion market cap prominent player in the Electric Utilities industry, announced Wednesday that it has completed the sale and issuance of $4.9 billion in senior notes, according to a statement in a Securities and Exchange Commission filing. According to InvestingPro data, the company maintains a GOOD financial health score, suggesting strong operational fundamentals.

The company sold $625 million of 4.734% senior secured first lien notes due 2030 and $625 million of 5.407% senior secured first lien notes due 2035. Additionally, NRG Energy issued $1.25 billion of 5.750% senior notes due 2034 and $2.4 billion of 6.000% senior notes due 2036. The notes will be guaranteed by NRG Energy’s current and future wholly-owned U.S. subsidiaries that guarantee term loans under its credit agreement.

The secured notes are backed by a first priority security interest in the same collateral pledged for the benefit of lenders under the company’s credit agreement, including a substantial portion of the property and assets owned by NRG Energy and its guarantors.

The 2030 and 2035 notes will pay interest semi-annually on April 15 and October 15, beginning April 15, 2026. The 2034 and 2036 notes will pay interest semi-annually on January 15 and July 15, starting July 15, 2026.

According to the filing, NRG Energy intends to use a portion of the net proceeds from the notes to partially fund the cash portion of the purchase price for its previously announced acquisition of the issued and outstanding equity interests of Lightning Power, LLC, Linebacker Power Holdings, LLC, CSS Intermediate HoldCo, LLC, and Jack County Power Development, LLC. The company also plans to use proceeds from the 2035 notes to repay in full $500 million of its 2.000% senior secured first lien notes maturing on December 2, 2025.

The notes were sold in a private placement to qualified institutional buyers in the United States and to non-U.S. persons outside the United States.

This information is based on a press release statement included in NRG Energy’s SEC filing.

In other recent news, NRG Energy has made significant strides in its financial and strategic initiatives. The company priced $4.9 billion in notes to partially fund its acquisition of Lightning Power, with the offerings including both secured and unsecured notes due between 2030 and 2036. This move follows the commencement of concurrent notes offerings aimed at the same acquisition, highlighting NRG’s commitment to expanding its portfolio. Additionally, NRG Energy has entered into a strategic agreement with LandBridge Company for a potential 1,100 MW natural gas power generation facility in Reeves County, Texas, which could become operational by the end of 2029.

NRG Energy also raised its financial guidance for 2025, citing strong performance and favorable weather conditions. The company increased its Adjusted Net Income guidance to a range of $1,470-$1,590 million and adjusted earnings per share to $7.55-$8.15. In another development, Scotiabank initiated coverage on NRG Energy with a Sector Outperform rating and a $212 price target, citing the company’s attractive valuation. These recent developments underscore NRG Energy’s ongoing efforts to strengthen its financial position and growth prospects.

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