HOUSTON, June 6 /PRNewswire-FirstCall/ -- Reliant Energy, Inc.
("Reliant") announced today that it has priced $575 million aggregate
principal amount of its 7.625 percent senior notes due 2014 (the "2014
notes"), and has priced $725 million aggregate principal amount of its
7.875 percent senior notes due 2017 (the "2017 notes" and, together with
the 2014 notes, the "senior notes").
Reliant intends to use the net proceeds of the offering, together with
cash on hand, (1) to consummate its previously announced cash tender offers
and consent solicitations for any and all $550,000,000 of its outstanding
9.25 percent Senior Secured Notes due 2010 and $550,000,000 of its
outstanding 9.50 percent Senior Secured Notes due 2013, (2) to retire its
$400 million senior secured term loan, (3) to repay any outstanding
principal and accrued interest under its existing credit facilities, (4) to
pay related fees and expenses and (5) for working capital purposes. The
offering of the senior notes, which is expected to close on or about June
13, 2007, is conditioned on, among other things, entering into refinanced
credit facilities.
This announcement is for informational purposes only and shall not
constitute an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of the senior notes in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction or an exemption therefrom.
Reliant Energy, Inc. (NYSE: RRI) based in Houston, Texas, provides
electricity and energy services to retail and wholesale customers in the
United States. In Texas, the company provides service to nearly 1.9 million
retail electricity customers, including residential and small business
customers and commercial, industrial, governmental and institutional
customers. Reliant also serves commercial, industrial, governmental and
institutional customers in the PJM (Pennsylvania, New Jersey and Maryland)
market.
The company is one of the largest independent power producers in the
nation with approximately 16,000 megawatts of power generation capacity
across the United States. These strategically located generating assets
utilize natural gas, fuel oil and coal.
This news release contains "forward-looking statements."
Forward-looking statements are statements that contain projections,
estimates or assumptions about our revenues, income and other financial
items, our plans and objectives for future operations or about future
economic performance, transactions and dispositions and financings related
thereto. In many cases you can identify forward-looking statements by
terminology such as "anticipate," "estimate," "believe," "continue,"
"could," "intend," "may," "plan," "potential," "predict," "should," "will,"
"expect," "objective," "projection," "forecast," "goal," "guidance,"
"outlook," "effort," "target" and other similar words. However, the absence
of these words does not mean that the statements are not forward-looking.
Actual results may differ materially from those expressed or implied by
forward-looking statements as a result of many factors or events, including
but not limited to access to capital, legislative and regulatory
developments, the effects of competition, financial market conditions, the
timing and extent of changes in commodity prices and interest rates,
weather conditions, changes in our business plan and other factors we
discuss or reference to in the "Risk Factors" section of our filings with
the Securities and Exchange Commission.
Each forward-looking statement speaks only as of the date of the
particular statement and we undertake no obligation to update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.
SOURCE Reliant Energy, Inc.
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Related links:
http://www.reliant.com
CONTACT:
Investors, Dennis Barber, +1-713-497-3042, or
media, Pat Hammond, +1-713-497-7723, both of Reliant Energy, Inc.
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