HOUSTON, Nov. 14 /PRNewswire-FirstCall/ -- Reliant Energy, Inc.
announced today that it has successfully completed its consent solicitation
relating to:
* Three series of its outstanding Senior Secured Notes (collectively, the
"Notes"):
-- 9.25% Senior Secured Notes due 2010;
-- 9.50% Senior Secured Notes due 2013; and
-- 6.75% Senior Secured Notes due 2014; and
* Five series of Pennsylvania Economic Development Financing Authority's
outstanding Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC
Project) (collectively, the "Bonds"):
-- Series 2001A;
-- Series 2002A;
-- Series 2002B;
-- Series 2003A; and
-- Series 2004A.
The solicitation process was completed on Tuesday, Nov. 14, 2006, as
consents were received from the required majority of each series of Notes
and Bonds.
Promptly after the satisfaction or waiver of all conditions to the
consent, the Company will pay each holder of the Notes who has delivered
(and has not revoked) a valid consent prior to the completion of the
consent solicitation a cash consent fee of $2.50 for each $1,000 in
principal amount of the Notes. In accordance with the terms of the consent
solicitation, no fees will be paid to holders of the Bonds. The detailed
terms and conditions of the consent solicitation are contained in the
Second Amended and Restated Consent Solicitation Statement dated November
8, 2006.
The consent of the holders of the Notes and Bonds is one of the closing
conditions for the credit-enhanced retail structure, which Reliant entered
into with Merrill Lynch on September 24. When finalized, this structure
will substantially eliminate collateral postings and reduce liquidity
requirements associated with procuring supply for Reliant Energy's retail
energy business. The transaction is contingent on additional closing
conditions, which include a series of financing activities related to its
bank credit facilities, and is expected to close in the fourth quarter of
2006.
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 approximately 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 in
operation across the United States. These strategically located generating
assets utilize natural gas, fuel oil and coal. For more information, visit
http://www.reliant.com/corporate.
SOURCE Reliant Energy, Inc.
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Related links:
http://www.reliant.com/corporate
CONTACT:
Dennis Barber, investors, +1-713-497-3042, or
Pat Hammond, media, +1-713-497-7723, both for Reliant Energy,
Inc.
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