NRG's Lightning Power launches tender offer for $1.5B notes By Investing.com

HOUSTON - NRG Energy's (NYSE:NRG) subsidiary Lightning Power has initiated a tender offer to purchase all of its outstanding $1.5 billion in 7.250% senior secured notes due 2032, according to a press release statement. The move comes as parent company NRG, with a market capitalization of $36.5 billion, trades up nearly 80% over the past year, though InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value.

The company is offering $1,063.75 per $1,000 principal amount for notes tendered by the early deadline of April 27, 2026. This includes a $50 early tender payment. Notes tendered after that date but before the May 12, 2026 expiration will receive $1,013.75 per $1,000 principal amount. NRG maintains a current ratio of 1.64, indicating solid liquidity to manage its $16.6 billion total debt load as it restructures these obligations.

Lightning Power is simultaneously soliciting consents to amend the indenture governing the notes. The proposed amendments would eliminate substantially all restrictive covenants, certain affirmative covenants, and events of default. The company also seeks to release all guarantees and collateral securing the notes.

The covenant amendments require consent from holders of a majority of the outstanding notes, while the release of guarantees and collateral requires consent from at least 66.67% of noteholders.

Lightning Power stated it intends to exercise its right under the indenture to redeem up to 10% of the notes' aggregate initial principal amount in two separate redemptions at 103% of principal, plus accrued interest. The company noted there is no assurance any notes will be redeemed.

Noteholders may withdraw tendered notes until April 27, 2026. Settlement for notes tendered by the early deadline is expected within three business days after April 27, 2026.

The tender offer is subject to several conditions, including a financing condition. The offer is not contingent on any minimum principal amount being tendered.

Citigroup Global Markets and Santander US Capital Markets are serving as lead dealer managers for the transaction.

In other recent news, NRG Energy has launched debt offerings to refinance its obligations, issuing senior secured first lien notes due 2031 and senior unsecured notes due 2034 and 2036. The notes will be guaranteed by NRG's current and future wholly-owned U.S. subsidiaries. Jefferies has raised its price target on NRG Energy to $199, maintaining a Buy rating, and anticipates a significant new gas turbine project announcement in 2026. Wolfe Research has upgraded NRG Energy's stock rating to Outperform, highlighting the company's strong cash flow from its Texas market operations and recent asset acquisitions. Goldman Sachs has reinstated coverage with a Buy rating, noting the LS Power asset acquisition as a transformative move that doubled NRG's generation capacity and diversified its business profile. Additionally, affiliates of LS Power priced a public offering of 14.3 million shares at $164.00 per share, generating gross proceeds of approximately $2.35 billion, although NRG will not receive any proceeds from this sale.

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