Deal Description: On August 9, 2021, NRG Energy, Inc. (NYSE: NRG) announced that it had priced its offering of $1.1 billion in aggregate principal amount of 3.875% senior notes due 2032 (the “New Notes”). The New Notes are being issued under NRG’s Sustainability-Linked Bond Framework, which sets out certain sustainability targets, including reducing greenhouse gas emissions. Failure to meet the sustainability targets with respect to the New Notes will result in a 25 basis point increase to the interest rate payable on the New Notes from and including August 15, 2026. The offering is expected to close on August 23, 2021, subject to customary closing conditions.
NRG intends to use the net proceeds from the offering, together with cash on hand and borrowings under one or more of its liquidity facilities, to repurchase, pursuant to NRG’s concurrent exercise of its optional redemption rights, (i) all of the $1.0 billion outstanding aggregate principal amount of its 7.25% senior notes due 2026 and (ii) $355 million of the $1.23 billion outstanding aggregate principal amount of its 6.625% senior notes due 2027, and to pay fees and expenses incurred in connection with such repurchases.
Baker Botts is representing NRG in both the notes offering and the optional redemptions.
Baker Botts Lawyers/Office Involved:
Corporate: Preston Bernhisel (Partner, Dallas); Jennifer Wu (Special Counsel, Austin); Jacqueline Scioli (Associate, Dallas); Derek Gabriel (Associate, Dallas); Victor Ochieng (Associate, Dallas); Rusty Shellhorn (Associate, Dallas)
Finance: Martin Toulouse (Partner, New York); Andrew Thomison (Partner, Houston)
Tax: Peter Farrell (Senior Associate, Washington)
Employee Benefits: Robin Melman (Partner, New York)
For more information, please see NRG’s news release by clicking here.
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