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NRG Announces Asset Sales Including Sale of its Interest in NRG Yield, Renewables Platform, ROFO Pipeline and South Central Business
$2.8 Billion cash proceeds1$7.0 Billion of debt to be removed2-
Revising asset sale cash proceeds target to approximately
$3.2 Billion -
NRG investor conference call and webcast today at
8:30 a.m. Eastern
NRG Sells Ownership in
The purchase and sale agreement includes the sale of NRG’s ownership in NRG Yield’s Class B and Class D shares, NRG’s renewable energy development and operations platforms, NRG’s renewable energy non-ROFO (Right of First Offer) backlog and pipeline, and the NRG ROFO updated pipeline, with the exception of four assets which are addressed in separate agreements as further detailed below.
The transaction is expected to close in the second half of the year and
is subject to various customary closing conditions, approvals and
consents, including:
The sale of NRG’s Renewables Platform and NRG’s interest in
NRG ROFO and Accelerated Drop Downs to
NRG and
The Carlsbad Energy Center and Buckthorn Solar drop downs are expected to close before year-end and are subject to both projects achieving commercial operations status as well as various customary closing conditions and approvals.
As part of the sale of NRG’s interest in
NRG Sells South Central Business
The South Central business owns and operates a 3,555 MW portfolio of generation assets consisting of 225 MW Bayou Cove, 430 MW Big Cajun-I, 1,461 MW Big Cajun-II, 1,263 MW Cottonwood and 176 MW Sterlington, and serves a customer base of cooperatives, municipalities and regional utilities under load contracts.
As part of the transaction, NRG is further optimizing value through
entering into a sale leaseback agreement for its 1,263 MW Cottonwood
plant, a highly efficient CCGT natural gas-fired combined cycle plant,
through
The transaction is expected to close in the second half of the year and
is subject to various customary closing conditions, approvals and
consents; including:
NRG Revises Asset Sale Cash Proceeds Target
Today’s announcement brings NRG’s cumulative Transformation Plan asset
sales to
NRG to Host Investor Conference Call and Webcast
NRG plans to host an investor conference call and webcast at
Advisors
Citi is serving as lead financial advisor on the sale of
About NRG
NRG is the leading integrated power company in the U.S., built on the
strength of our diverse competitive electric generation portfolio and
leading retail electricity platform. A Fortune 500 company, NRG creates
value through best in class operations, reliable and efficient electric
generation, and a retail platform serving residential and commercial
businesses. Working with electricity customers, large and small, we
implement sustainable solutions for producing and managing energy,
developing smarter energy choices and delivering exceptional service as
our retail electricity providers serve almost three million residential
and commercial customers throughout the country. More information is
available at www.nrg.com.
Connect with
Safe Harbor
In addition to historical information, the information presented in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as “may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,” “predict,” “target,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about the Company’s future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, anticipated benefits or costs of acquisitions or divestitures, and views of economic and market conditions.
Although NRG believes that its expectations are reasonable, it can give
no assurance that these expectations will prove to be correct, and
actual results may vary materially. Factors that could cause actual
results to differ materially from those contemplated herein include,
among others, general economic conditions, hazards customary in the
power industry, weather conditions, competition in wholesale power
markets, the volatility of energy and fuel prices, failure of customers
to perform under contracts, changes in the wholesale power markets,
changes in government regulations, the condition of capital markets
generally, our ability to access capital markets, unanticipated outages
at our generation facilities, adverse results in current and future
litigation, failure to identify, execute or successfully implement
acquisitions, repowerings or asset sales, our ability to implement value
enhancing improvements to plant operations and companywide processes,
our ability to implement and execute on our publicly announced
transformation plan, including any cost savings, margin enhancement,
asset sale, and net debt targets, our ability to proceed with projects
under development or the inability to complete the construction of such
projects on schedule or within budget, risks related to project siting,
financing, construction, permitting, government approvals and the
negotiation of project development agreements, our ability to progress
development pipeline projects, the timing or completion of GenOn's
emergence from bankruptcy, the inability to maintain or create
successful partnering relationships, our ability to operate our
businesses efficiently, our ability to retain retail customers, our
ability to realize value through our commercial operations strategy, the
ability to successfully integrate businesses of acquired companies, our
ability to realize anticipated benefits of transactions (including
expected cost savings and other synergies) or the risk that anticipated
benefits may take longer to realize than expected, our ability to close
the Drop Down transactions with
NRG undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law. The adjusted EBITDA and free cash
flow guidance are estimates as of
1 Excludes transaction costs; subject to working capital and other customary purchase price adjustments.
2 Debt as of 9/30/17.
3 Includes the drop down of TE Holdco (25%) and SPP to NYLD, and the sale of MN Wind.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180207005630/en/
Source:
NRG
Media:
Sheri Woodruff, 609-524-4608
or
Marijke
Shugrue, 609-524-5262
or
Investors:
Kevin L. Cole,
CFA, 609-524-4526
or
Lindsey Puchyr, 609-524-4527