NRG Energy sets price talk on $3.9 billion credit facility with launch

By Sara Rosenberg

New York, June 6 - NRG Energy Inc. released price talk on its $3.9 billion senior secured credit facility (Baa3) as the deal launched with a bank meeting on Monday afternoon, according to market sources.

The $2.3 billion revolver is being talked at Libor plus 275 basis points with a 50 bps unused fee, and the $1.6 billion term loan B is being talked at Libor plus 300 bps to 325 bps with a 1% Libor floor and an offer price of 99½ to par, sources said.

Upfront fees on the revolver are 75 bps for commitments of $25 million, 100 bps for commitments of $35 million and 125 bps for commitments of $50 million.

The B loan includes 101 soft call protection for one year.

Commitments towards the revolver are due on June 17, and commitments towards the term loan B are due on June 10.

Morgan Stanley & Co. Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and RBS Securities Inc. are the joint bookrunners on the deal, with Morgan Stanley the left lead.

Proceeds will be used to refinance an existing credit facility comprised of a $1 billion revolver, a $1.3 billion letter of credit facility and two outstanding term loan B tranches. Slightly more than $1 billion of the existing debt being replaced is scheduled to come due in 2013, with the remainder in 2015.

NRG is a Princeton, N.J.-based power generation company.

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