A couple of original lenders were selling down their exposure to NRG Energy's NRG Finance Company (FinCo) loan last week following the company's emergence from bankruptcy. At least $50 million was said to have come to the market in an auction, but the parties involved could not be determined. The name traded actively in the 543/4-56 range last week.
About $1.1 billion of the NRG FinCo loan was secured by mortgages and security agreements in respect to the assets of the projects financed under that facility. Creditors received the assets backing the loan as a part of the recovery package, explained a company spokesman. NRG was also obligated to contribute approximately $842 million in additional equity to the project. The $842 million in claims were given a pro rata share of the recovery package distributed to NRG's unsecured creditors in settlement of those claims, explained the spokesman.
Credit Suisse First Boston and Lehman Brothers led the $1.2 billion exit financing for NRG Energy. The loan comprises a $250 million revolver and a $950 million term loan "B" and is priced at 41/4% and 41/2%, respectively.