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MINNEAPOLIS, Minn., Nov. 21, 2002 -- NRG South Central Generating LLC, a wholly owned subsidiary of NRG Energy, Inc., Thursday received a notice of acceleration from the bond trustee, on behalf of bondholders, for its 8.962 percent senior secured series A-1 bonds due 2016 and its 9.479 percent senior secured series B-1 bonds due 2024.
The notice of acceleration renders the approximately $750 million in debt, which is nonrecourse to NRG Energy, immediately due and payable.
Based on discussions with the bondholders, it is NRG's understanding that the bond trustee issued the acceleration notice to preserve certain rights, and NRG continues negotiations with bondholders.
"We will continue to work with our lenders toward an overall restructuring of NRG's debt," said Richard C. Kelly, NRG president and chief operating officer. "We do not believe that the NRG South Central Generating bondholders' action will negatively affect the course of those discussions."
NRG South Central Generating defaulted on the bonds when it did not make approximately $47 million in combined principal and interest payments, due September 15, on the two bond issuances and did not make the required payments before the 15-day grace period expired.
NRG Energy, a wholly owned subsidiary of Xcel Energy, develops and operates power-generating facilities. Its operations include competitive energy production and cogeneration facilities, thermal energy production and energy resource recovery facilities.
Xcel Energy is a major U.S. electricity and natural gas company with regulated operations in 12 Western and Midwestern states. The company provides a comprehensive portfolio of energy-related products and services to 3.2 million electricity customers and 1.7 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the United States. Company headquarters are located in Minneapolis.
Source: NRG Energy, Inc.
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