N🟁N

NRG Energy, Inc. Announces Redemption of 4.0% Convertible Preferred Stock

  //business-finance.news-articles.net/content/200 .. demption-of-4-0-convertible-preferred-stock.html
  Published in Business and Finance on Tuesday, December 22nd 2009 at 8:40 GMT by Market Wire
          ^{🞛 This publication is a summary or evaluation of another publication}

PRINCETON, N.J.--([ BUSINESS WIRE ])--NRG Energy (NYSE: NRG) announced today that it has called for redemption all of the remaining 163,101 outstanding shares of its 4.0% Convertible Preferred Stock. The preferred stock redemption date will be January 21, 2010 and the redemption price will be $1,000.00 per share of preferred stock, or $20.00 per share on an as converted basis.

All shares of the preferred stock are held through The Depository Trust Company (DTC) and will be redeemed according to the DTC's procedures. On or before the redemption date, NRG will have deposited in escrow for the benefit of the holders thereof the funds necessary for the aggregate payment of the redemption price. Any monies deposited by NRG and unclaimed at the end of five years from the redemption date shall, to the extent permitted by law, be repaid to NRG, after which repayment, the holders of the preferred stock called for redemption shall look only to NRG for the payment thereof.

Shares of preferred stock called for redemption may instead be converted into NRG's common stock, par value $0.01 per share prior to the redemption at an exchange rate of 50 shares of common stock per share of preferred stock.

Holders wishing to convert their preferred stock prior to redemption must follow the procedures for conversion on or before 4:00 pm (Eastern Daylight Time) on January 20, 2010 and transfer their Preferred Stock to Mellon Investor Services LLC (Mellon), as the redemption agent.

On and after the redemption date, all 163,101 shares of preferred stock shall be deemed no longer to be outstanding; dividends thereon shall cease to accrue; and all rights with respect to the shares of preferred stock called for redemption shall forthwith cease and terminate at the close of business on the redemption date except only the right of the holders thereof to receive the redemption price, but without interest, upon surrender of their preferred stock. No shares of preferred stock may be converted after the conversion deadline.

Holders wishing either to convert their shares of preferred stock, or to receive the redemption price for their shares called for redemption, must transfer their shares to Mellon. Shares may be transferred in one of three ways: pursuant to the book-entry transfer procedures; by requesting the holder's broker, dealer, commercial bank, trust company or other nominee to effect the transaction; or by redeeming their shares through the DTC its Automated Tender Offer Program.

The notice of redemption and related materials will be distributed to holders of the preferred stock called for redemption on or about December 22, 2009. Questions relating to, and requests for additional copies of, the notice of redemption and the related materials should be directed to Mellon Investor Services LLC, at 800.877.3674.

This news release does not constitute an offer to sell or a solicitation of any offer to buy such securities nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

NRG Energy, Inc., a Fortune 500 company, owns and operates one of the country's largest and most diverse power generation portfolios. Headquartered in Princeton, NJ, the Company's power plants provide more than 24,000 megawatts of generation capacity—enough to supply more than 20 million homes. NRG's retail business, Reliant Energy, serves more than 1.6 million residential, business, commercial and industrial customers in Texas. A past recipient of the energy industry's highest honors—Platts Industry Leadership and Energy Company of the Year awards, NRG is a member of the U.S. Climate Action Partnership (USCAP), a group of business and environmental organizations calling for mandatory legislation to reduce greenhouse gas emissions. More information is available at [ www.nrgenergy.com ].

Forward-Looking Statements

This communication contains forward-looking statements that may state NRG's or its management's intentions, beliefs, expectations or predictions for the future. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as "will," "expect," "estimate," "anticipate," "forecast," "plan," "believe" and similar terms. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, risks and uncertainties related to the capital markets generally and the failure or inability to replace the credit sleeve.

The foregoing review of factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements included herein should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the SEC at [ www.sec.gov ].