HOUSTON, June 8 /PRNewswire-FirstCall/ -- Reliant Energy, Inc.
("Reliant") announced today the pricing terms of the previously announced
cash tender offers and consent solicitations for Reliant's outstanding
9.25% Senior Secured Notes due 2010 (the "2010 notes"-CUSIP No. 75952B AF
2) and 9.50% Senior Secured Notes due 2013 (the "2013 notes"-CUSIP No.
75952B AJ 4 and, together with the 2010 notes, the "notes"). Terms used but
not defined herein shall have the meanings ascribed to them in the Offer to
Purchase and Consent Solicitations Statement of Reliant, dated May 23, 2007
(the "Statement").
The total consideration for the 2010 notes and the 2013 notes was
calculated as of 2:00 p.m., New York City time, today by reference to a
fixed spread of 50 basis points plus the bid-side yield to maturity of the
applicable U.S. Treasury security as described in the Statement. The
applicable U.S. Treasury security with respect to the 2010 notes is the
3.625% U.S. Treasury Note due June 30, 2007 and with respect to the 2013
notes is the 5.125% U.S. Treasury Note due June 30, 2008. The bid-side
yield to maturity on the 3.625% U.S. Treasury Note due June 30, 2007 as of
2:00 p.m., New York city time today was 5.330% and the bid-side yield to
maturity on the 5.125% U.S. Treasury Note due June 30, 2008 as of 2:00
p.m., New York city time today was 5.076%.
Reliant will pay the total consideration to holders of notes who
validly tendered their notes and delivered their consents prior to 5:00
p.m., New York City time, on June 5, 2007 (the "Consent Payment Deadline"),
and whose notes are accepted for purchase by Reliant. Assuming an
early-payment date of June 13, 2007, the total consideration per $1,000
principal amount of 2010 notes and 2013 notes that were validly tendered
prior to the Consent Payment Deadline is $1,048.84, and $1,085.55,
respectively. In each case, the total consideration per $1,000 principal
amount of notes includes a cash consent payment of $20.00. Holders of such
notes will also receive accrued and unpaid interest on their notes up to,
but not including, the Early Payment Date.
As of the Consent Payment Deadline, Reliant had received tenders and
consents for $516,125,000 in aggregate principal amount of the 2010 notes,
representing 93.84% of the outstanding 2010 notes, and $531,894,000 in
aggregate principal amount of the 2013 notes, representing 96.71% of the
outstanding 2013 notes. The tender offers and consent solicitations remain
open and are scheduled to expire at 11:59 p.m., New York City time, on June
20, 2007, unless extended (the "Expiration Date").
Assuming a final-payment date of June 21, 2007, holders tendering their
notes after the Consent Payment Deadline, but prior to the Expiration Date,
whose notes are accepted for purchase by Reliant, will receive the tender
offer consideration of $1,028.19 (in the case of the 2010 notes) or
$1,064.81 (in the case of the 2013 notes) per $1,000 principal amount of
notes tendered, but will not receive the cash consent payment. Holders of
such notes will also receive accrued and unpaid interest on their notes up
to, but not including, the Early Payment Date or the Final Payment Date, as
the case may be.
As described in the Statement, the tender offers and consent
solicitations are subject to the satisfaction of certain conditions,
including the Supplemental Indentures Condition, the Financing Condition
and the General Conditions. No assurance can be given that such conditions
will be satisfied in a timely manner or at all.
The complete terms and conditions of the tender offers and consent
solicitations are described in the Statement, copies of which may be
obtained by contacting Global Bondholder Services Corp., the information
agent for the tender offers and consent solicitations, at (212) 430-3774 or
(866) 470-4200 (toll free). Questions regarding the tender offers and
consent solicitations may be directed to the dealer managers and
solicitation agents for the tender offers and consent solicitations:
Goldman, Sachs & Co., which may be contacted at (212) 902-9077 (collect) or
(800) 828-3182 (toll free), Deutsche Bank Securities, which may be
contacted at (212) 250-7772 (collect) or (800) 553-2826 (toll free), J.P.
Morgan Securities Inc., which may be contacted at (212) 270-3994 (collect)
and Merrill Lynch & Co., which may be contacted at (212) 449-4914 (collect)
or (888) 654-8637 (toll free).
This announcement is not an offer to purchase, a solicitation of an
offer to purchase or a solicitation of consents with respect to any
securities. The tender offers and consent solicitations are being made
solely by the Statement.
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. For more information, visit
http://www.reliant.com.
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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