NRG Energy Raises $4.9B via Debt Issuance to Fund $12B Acquisition
NRG Energy has announced plans to raise $4.9 billion through debt issuance. The company aims to use the net proceeds to fund a recent acquisition of natural-gas generation assets from LS Power Equity Advisors, valued at $12 billion in enterprise value. Additionally, NRG Energy's shares experienced a 1.6% drop on Thursday, outperforming the S&P 500's 0.5% decline.
The debt issuance consists of senior secured first-lien notes maturing in 2030 and 2035, and senior unsecured notes maturing in 2034 and 2036. NRG Energy also plans to use a portion of the funds to repay $500 million of its 2% senior secured first-lien notes maturing in December. The acquisition from LS Power Equity Advisors involved multiple investors, although specific names of individual participants have not been publicly disclosed.
NRG Energy's debt issuance and acquisition aim to strengthen its financial position and expand its natural-gas generation capabilities. The company's stock performance, despite a general market decline, reflects investors' confidence in its strategic moves.
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