NRG adds $925 million to debt buybacks; $385 million used so far

New York, Feb. 29 – NRG Energy, Inc. said it has allocated an additional $925 million for debt repurchases in 2016 on top of the $385 million of capital used so far.

With the extra amount announced Monday, the program will bring $1.3 billion of incremental reduction in debt, the company said in its fourth-quarter earnings release.

Through Feb. 29, NRG has used $385 million of the $500 million allocation of capital to debt reduction revealed in the company’s third-quarter earnings conference call.

The utilization corresponds to $417 million par value.

NRG said it intends to complete the previously announced program and allocate an additional $925 million for repurchases this year.

Combined with the purchases already completed and $370 million of scheduled amortizations, debt reduction will account for nearly 75% of the capital allocated this year, the company added.

Specifically, in the fourth quarter NRG bought $5 million of its 8¼% senior notes due 2020 at an average price of 96.5, $54 million of its 6 5/8% senior notes due 2023 at an average price of 85.972, $95 million of its 6¼% senior notes due 2024 at an average price of 84.725 and $92 million of its 7 5/8% senior notes due 2018 at an average price of 102.232, according to a 10-K filing with the Securities and Exchange Commission.

Since the quarter ended, the company has repurchased a further $171 million of its senior notes.

As of Dec. 31, NRG had $1,058,000,000 of the 8¼% notes outstanding, $936 million of the 6 5/8% notes, $904 million of the 6¼% notes and $1,039,000,000 of the 7 5/8% notes outstanding as well as other securities that were not repurchased.

In addition to the buybacks of NRG Energy notes, NRG’s GenOn subsidiaries bought back in the open market $119 million of senior notes issued by GenOn Energy, Inc. and $155 million of senior notes issued by GenOn Americas Generation, LLC during the fourth quarter.

Specifically, GenOn Energy bought $33 million of 7 7/8% senior notes due 2017 at an average price of 95.172, $25 million of 9½% senior notes due 2018 at an average price of 90.95 and $61 million of 9 7/8% senior notes due 2020 at an average price of 83.847, according to the 10-K.

GenOn Americas Generation bought $84 million of 8½% senior notes due 2021 at an average price of 84.91 and $71 million of 9 1/8% senior notes due 2031 at an average price of 77.018.

NRG Energy is a Princeton, N.J., electricity company.

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