NRG Energy Inc., which operates electric-generating plants in Connecticut, said Tuesday it intends to offer $1.2 billion in senior notes due 2018 and use the proceeds to buy the same amount in 7.25 percent senior notes due in 2014, The Associated Press reports.
The notes to be offered will be guaranteed by some of the Princeton, N.J., utility’s domestic subsidiaries.
The notes are being offered only to qualified institutional buyers.
NRG has launched a tender offer to buy the $1.2 billion in 2014 notes. The tender offer will expire at 11:59 p.m. Eastern time on Feb. 8.
Under the terms of the offer, holders of the 2014 notes who validly tender their 2014 notes before 5 p.m. Eastern time on Jan. 25 will receive the “total consideration” of $1,020.63 per $1,000 in notes.
Holders who tender their notes between Jan.25 and Feb. 8 will receive only the “tender consideration” of $1,000.63 per $1,000 in notes.
