HOUSTON, Dec. 21 /PRNewswire-FirstCall/ -- Reliant Energy, Inc. today
announced the final results of the tender offer to holders of its 5%
Convertible Senior Subordinated Notes due 2010, which expired at midnight,
Eastern Standard Time, on December 20, 2006. Holders of $273 million of
principal amount of notes, representing 99% of the total $275 million
outstanding, accepted the offer.
"This transaction is the latest in a series of steps we have taken to
improve Reliant's financial flexibility," said Mark Jacobs, executive vice
president and chief financial officer. "This tender offer improves our
credit metrics without diluting our equity. Since December 2002, we have
reduced net debt from $7.8 billion to $3.3 billion."
Under the terms of the offer, Reliant will exchange 104.8108 shares of
common stock, which represents the number of shares each note will convert
to, plus $150 in cash for each $1,000 principal of notes, for total
consideration of 28.6 million shares and $41 million in cash.
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 .
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 for the future, future economic performance, transactions
and dispositions and financings related thereto. Forward-looking statements
relate to future events and anticipated revenues, earnings, business
strategies, competitive position or other aspects of our operations or
operating results. 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.
We have based our forward-looking statements on management's beliefs
and assumptions based on information available to management at the time
the statements are made. Actual results may differ materially from those
expressed or implied by forward-looking statements as a result of many
factors or events, including the ongoing negotiation of the retail credit
structure, 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 in 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/corporate
CONTACT:
Dennis Barber of Reliant Energy, Inc.,
+1-713-497-3042
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