nrg energy inc (NRA) Snapshot

On June 4, 2013, NRG Energy, Inc. as borrower completed a refinancing of its senior secured credit facility comprised of a senior secured term loan facility in an aggregate principal amount of $2.022 billion and a senior secured revolving credit facility in an aggregate principal amount not to exceed $2.511 billion. The refinancing was consummated pursuant to an amendment dated as of June 4, 2013 to the existing amended and restated credit agreement dated as of July 1, 2011. The term facility and revolving facility will each mature on July 1, 2018. The principal amount of the term facility amortizes in quarterly installments equal to 0.25% of the original principal amount of the term facility, with the balance payable at maturity. Borrowings under the term facility shall bear variable rates of interest, as determined at company’s election, at LIBOR or at base rate, in each case, plus an applicable margin equal to (a) 2.00% per annum for LIBOR loans and (b) 1.00% per annum for base rate loans. The Lenders under the revolving facility will be paid a per annum commitment fee of 0.50% on the average daily amount of the unused portion of the revolving commitments. Among other customary restrictions that are usual for facilities and transactions of this type, the terms of the amended credit agreement include: mandatory prepayments that are substantially consistent with the mandatory asset sale offer provisions with respect to company’s senior notes, as adjusted and otherwise modified to reflect the status and nature of the senior credit facility, including a requirement that any such offer shall first be made to the facilities; and other covenants substantially consistent with company’s senior notes, as adjusted or otherwise modified to reflect the status and nature of the senior credit facility as a senior secured facility. The events of default under the amended credit agreement include, among others, payment defaults, cross defaults with certain other indebtedness, breaches of covenants, judgments, and change of control and bankruptcy events. In the event of an event of default, the amended credit agreement requires company to pay incremental interest at the rate of 2.0% and, depending on the nature of the default, the commitments will either automatically terminate and all unpaid amounts immediately become due and payable, or the lenders may in their discretion terminate their commitments and declare due all unpaid amounts outstanding. In connection with the Amendment, the company and certain of its subsidiaries reaffirmed the grant of a security interest in substantially all of their assets, subject to customary exceptions for facilities and transactions of this type, and certain of company’s subsidiaries reaffirmed a guaranty of amounts borrowed and obligations incurred under the amended credit agreement.

NRG Energy, Inc. announced that Mr. John Chlebowski, a director of NRG Energy will be joining the Board of Directors of NRG Yield effective immediately prior to the closing of the initial public offering and has agreed to resign as a director of NRG on such date. Mr. Chlebowski has served on the NRG Board of Directors since NRG’s emergence from bankruptcy in December 2003.

NRG Energy, Inc. announced that GenOn Energy, Inc., has given the required notice under the governing indenture to redeem for cash all of GenOn's remaining 7.625% Senior Notes due 2014 on June 24, 2013. The redemption price for the 2014 Notes will be 100% of the principal amount of the 2014 Notes, plus the Applicable Premium, plus accrued and unpaid interest to the Redemption Date.