By Paul A Harris
Portland, Ore., May 4 – GenOn Energy Inc. priced an upsized $550 million issue of five-year senior secured first-lien notes due 2022 at par to yield 10½% on Thursday, according to market sources.
The yield printed on top of yield talk. Initial guidance was in the 11% area, according to a trader.
The deal, which was expected to be non-rated at the time of issuance, was led by bookrunner Goldman Sachs & Co.
The issuing entity is special purpose vehicle Remote Escrow Vehicle LLC, which is to be merged with GenOn. Upon completion of that merger GenOn plans to use the proceeds to take out the 7 7/8% senior notes due June 15, 2017 originally issued by Reliant Energy Inc., prior to the merger of Reliant with Mirant, to form GenOn, in 2010.
GenOn is a Princeton, N.J.-based power producer.
| Issuer: | Remote Escrow Finance Vehicle LLC (to be merged with GenOn Energy, Inc.)
|
| Amount: | $550 million, increased from $540 million
|
| Maturity: | June 1, 2022
|
| Securities: | Senior secured first-lien notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 10½%
|
| Price: | Par
|
| Yield: | 10½%
|
| Spread: | 857 bps
|
| First call: | June 1, 2020 at 105.25
|
| Trade date: | May 4
|
| Settlement date: | May 8
|
| Ratings: | Non-rated at time of issuance
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10½%
|
| Marketing: | Quick to market
|
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