NRG Energy Launches Offerings of Senior Secured Notes Due 2031

NRG Energy announced the commencement of concurrent offerings of senior secured first lien notes due 2031 andsenior unsecured notes, consisting of senior unsecured notes due 2034 and senior unsecured notes due 2036. The Notes will be guaranteed by each of NRG's current and future wholly-owned U.S. subsidiaries that guarantee the term loans under NRG's credit agreement. The Secured Notes will be secured by a first priority security interest in the same collateral that is pledged for the benefit of the creditors under NRG's credit agreement and existing senior secured notes, which collateral consists of a substantial portion of the property and assets owned by NRG and the guarantors. NRG intends to use the net proceeds from the Offerings, together with the net proceeds of its proposed new term loan B in an aggregate principal amount of $900M, to repay a portion of the outstanding borrowings under the NRG revolving credit facility and to pay the tender price of a substantially concurrent tender offer through its wholly-owned subsidiary, Lightning Power, for Lightning's outstanding 7.250% senior secured notes due 2032, to pay estimated transaction fees, expenses and premiums and, the remainder, if any, for general corporate purposes, which may include the repurchase, repayment, prepayment or redemption of other debt of NRG, Lightning or any of their respective subsidiaries. The consummation of the Secured Notes Offering is not conditioned upon the completion of the Unsecured Notes Offering or the New TLB or vice versa. The Tender Offer is being made only by and pursuant to the terms and conditions of the related offer to purchase and consent solicitation statement. The Offerings are not conditioned upon the completion of the Tender Offer or the tender of any specific amount of the Lightning Notes.