NRG Energy announces cash tender offer for Lightning Power senior secured notes

NRG Energy (NRG) announced that its wholly-owned subsidiary, Lightning Power, has commenced an offer to purchase for cash any and all of Lightning’s outstanding 7.250% senior secured notes due 2032, of which $1,500 million aggregate principal amount is currently outstanding. In conjunction with the Tender Offer, Lightning is also soliciting consents to adopt certain proposed amendments to the indenture governing the Notes to eliminate substantially all of the restrictive covenants and certain affirmative covenants and events of default and related provisions therein and release all of the guarantees of and the collateral securing the Notes. The Proposed Amendments require the consent of holders of a majority in aggregate principal amount of the outstanding Notes and the Release requires the consent of holders of at least 662/3% in aggregate principal amount of the outstanding Notes. In addition, pursuant to the terms of the Indenture, Lightning currently intends to exercise its right to redeem, in two separate redemptions, up to 10.0% of the aggregate initial principal amount of the Notes in each redemption, at a redemption price equal to 103.0% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date. However, there can be no assurance that any Notes will be redeemed. Nothing contained herein shall constitute a notice of redemption for the Notes.