NRG prices bonds for M&A, including sustainability-linked debut

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By Richard Metcalf
18 Nov 2020

NRG Energy has priced a roughly $3.8bn five tranche bond offering — including the first ever sustainabilty-linked notes from a US issuer — to finance its acquisition of North American energy retailer Direct Energy.

The debt package comprises investment grade and high yield notes as well as an unusual tranche of pre-capitalised trust securities (P-Caps). The tranche with the sustainability-linked pricing is the longer dated of the high grade bonds, with a tenor of seven years.

Unlike a green bond, where the proceeds ...

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