NRG Makes Gains In First Week on NYSE
NRG Energy Inc. pulled off a respectable first three days on the
New York Stock Exchange, as the independent power subsidiary of
Northern States Power saw its initial public offering (IPO) close
well above its set price of $15 when the markets closed last
Friday. NRG opened at $15.88 on Wednesday, and closed on Friday at
$17 1/4 on a volume of 913,000 shares.
NRG jumped in where others have backpedaled recently in light of
stock market uncertainty and lagging interest in IPOs. Duke Energy
Field Services (DEFS), a wholly owned subsidiary of Duke Energy and
Phillips Petroleum, announced the postponement May 26 of its IPO
because of "volatile market conditions."
The net proceeds to NRG are expected to be approximately $449
million, which will be used to repay a loan from Citicorp USA Inc.
The loan was used to fund a portion of the purchase price of the Cajun
facilities acquired in March 2000. The remaining net proceeds will be
used for pending acquisition of generation assets from Conectiv, the
development and construction of new facilities and additions to
working capital (see NGI, April 24).
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.
Carolyn Davis, Houston
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