NRG Energy IPO to Fund Projects
NRG Energy Inc., which has evidenced some pretty big capital
plans of late, is going public. The Minneapolis-based subsidiary of
Northern States Power filed for an offering of 18% of its common
stock. The maximum aggregate price of the offer is $600 million.
All proceeds will remain with NRG Energy.
In March Northern States approved the NRG stock issue and said
the offering would raise capital intended to fund a portion of
NRG's project investments and other capital requirements for this
year. None of the proceeds are to go to Northern States.
Also last month, NRG completed the purchase from National Power
of the 680 MW gas-fired Killingholme A combined-cycle gas-turbine
power station in North Lincolnshire, England, for about US$620
million. The company also bought 1,708 MW of fossil fuel generating
assets from Cajun Electric Power Cooperative Inc. in Louisiana for
This month NRG subsidiary NRG Thermal Corp. agreed to buy the
Harrisburg Steam Works and Statoil Energy Power/Paxton LP, both in
Harrisburg, PA, from Statoil Energy Inc. In February, NRG Energy
signed up with GE Power Systems to buy 11 gas turbine generators
and five steam turbine generators for about $500 million over the
next five years.
NRG Energy is primarily engaged in the acquisition, development,
ownership and operation of power generation facilities. NRG Energy
owns all or a portion of 57 power generation projects with a total
generating capacity of more than 23,000 MW; its net ownership
interest in these projects exceeds 13,000 MW.
The offering will be managed by Salomon Smith Barney Inc.
Additional underwriters include Credit Suisse First Boston; ABN
AMRO Rothschild; Banc of America Securities LLC; Goldman, Sachs
& Co.; Lehman Brothers; Merrill Lynch & Co.; and Morgan
Stanley Dean Witter. A registration statement has been filed with
the SEC but has not yet become effective.
Joe Fisher, Houston
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