NRG ENERGY, INC. $1,100,000,000 Purchase Agreement
Exhibit 1.1
NRG ENERGY, INC.
$1,100,000,000
$1,100,000,000
8.25% Senior Notes Due 2020
Purchase Agreement
August 17, 2010
Citigroup Global Markets Inc.
Banc of America Securities LLC
Deutsche Bank Securities Inc.
As Representatives of the Initial Purchasers
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Banc of America Securities LLC
Deutsche Bank Securities Inc.
As Representatives of the Initial Purchasers
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
NRG Energy, Inc., a corporation organized under the laws of Delaware (the “Company”), proposes
to issue and sell to the several parties named in Schedule I hereto (the “Initial Purchasers”), for
whom you (the “Representatives”) are acting as representatives, $1,100,000,000 principal amount of
its 8.25% Senior Notes due 2020 (the “Notes”). The Company’s obligations under the Notes and the
Indenture (as defined below) will be, jointly and severally, unconditionally guaranteed (the
“Guarantees”), on a senior basis, by each of the subsidiaries of the Company listed on the
signature pages hereto (collectively, the “Guarantors”). The Notes and the Guarantees are herein
referred to as the “Securities”. The Securities will have the benefit of a registration rights
agreement (the “Registration Rights Agreement”) to be dated as of the Closing Date (as defined
below), between the Company, the Guarantors and the Initial Purchasers, pursuant to which the
Company will agree to register the Securities under the Act subject to the terms and conditions
therein specified. The Securities are to be issued under a supplemental indenture, to be dated the
Closing Date, to a base indenture, dated as of February 2, 2006, in each case between the Company
and Law Debenture Trust Company, as trustee (the “Trustee”); such supplemental indenture, together
with such base indenture, is referred to herein as the “Indenture.” To the extent there are no
additional parties listed on Schedule I other than you, the term Representatives as used herein
shall mean you as the Initial Purchasers, and the terms Representatives and Initial Purchasers
shall mean either the singular or plural as the context requires.
The use of the neuter in this Agreement shall include the feminine and masculine wherever
appropriate. Certain terms used herein are defined in Section 15 hereof.
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The sale of the Securities to the Initial Purchasers will be made without registration of the
Securities under the Act in reliance upon exemptions from the registration requirements of the Act.
In connection with the sale of the Securities, the Company has prepared a preliminary offering
memorandum, dated August 17, 2010 (as amended or supplemented at the date thereof, including any
and all exhibits thereto and any information incorporated by reference therein, the “Preliminary
Memorandum”), and will prepare a final offering memorandum (as may be subsequently amended or
supplemented, including any and all exhibits thereto and any information incorporated by reference
therein, the “Final Memorandum”). Each of the Preliminary Memorandum and the Final Memorandum sets
forth certain information concerning the Company and the Securities. The Company hereby confirms
that it has authorized the use of the Disclosure Package, the Preliminary Memorandum and the Final
Memorandum, and any amendment or supplement thereto, in connection with the offer and sale of the
Securities by the Initial Purchasers. Unless stated to the contrary, any references herein to the
terms “amend”, “amendment” or “supplement” with respect to the Disclosure Package, the Preliminary
Memorandum and the Final Memorandum shall be deemed to refer to and include any information filed
under the Exchange Act subsequent to the Execution Time that is incorporated by reference therein.
1. Representations and Warranties. The Company represents and warrants to and agrees with
each of the Initial Purchasers that:
(a) The Preliminary Memorandum, at the date thereof, did not contain any untrue statement of a
material fact or omit to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading. As of its date and on the
Closing Date, the Final Memorandum did not and will not contain any untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; provided, however,
that the Company makes no representation or warranty as to the information contained in or omitted
from the Preliminary Memorandum or the Final Memorandum, or any amendment or supplement thereto, in
reliance upon and in conformity with information furnished in writing to the Company by or on
behalf of the Initial Purchasers through the Representatives specifically for inclusion therein, it
being understood and agreed that the only such information furnished by or on behalf of any Initial
Purchaser consists of the information described as such in Section 7(b) hereof.
(b) The Disclosure Package, as of the Execution Time, does not contain any untrue statement of
a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances
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under which they were made, not misleading. The preceding sentence does not apply to statements in or
omissions from the Disclosure Package based upon and in conformity with written information
furnished to the Company by any Initial Purchaser through the Representatives specifically for use
therein, it being understood and agreed that the only such information furnished by or on behalf of
any Initial Purchaser consists of the information described as such in Section 7(b) hereof.
(c) None of the Company, its Affiliates, or any person acting on its or their behalf has,
directly or indirectly, made offers or sales of any security, or solicited offers to buy, any
security under circumstances that would require the registration of the Securities under the Act.
(d) None of the Company, its Affiliates, or any person acting on its or their behalf has: (i)
engaged in any form of general solicitation or general advertising (within the meaning of
Regulation D) in connection with any offer or sale of the Securities or (ii) engaged in any
directed selling efforts (within the meaning of Regulation S) with respect to the Securities; and
each of the Company, its Affiliates and each person acting on its or their behalf has complied with
the offering restrictions requirement of Regulation S.
(e) The Securities satisfy the eligibility requirements of Rule 144A(d)(3) under the Act.
(f) Assuming the accuracy of the representations and warranties of the Initial Purchasers in
Section 4 of this Agreement, no registration under the Act of the Securities, and no qualification
of the Indenture under the Trust Indenture Act, is required for the offer and sale of the
Securities to or by the Initial Purchasers in the manner contemplated herein, in the Disclosure
Package and the Final Memorandum.
(g) The Company has been duly incorporated, is validly existing as a corporation in good
standing under the laws of the state of Delaware, has the corporate power and authority to own its
property and to conduct its business as described in the Disclosure Package and the Final
Memorandum and is duly qualified to transact business and is in good standing in each jurisdiction
in which the conduct of its business or its ownership or leasing of property requires such
qualification, except (i) to the extent that the failure to be so qualified or be in good standing
would not have a material adverse effect on the business or result of operations of the Company and
its subsidiaries, taken as a whole (a “Material Adverse Effect”) and (ii) for jurisdictions not
recognizing the legal concepts of good standing or qualification.
(h) Each domestic subsidiary of the Company has been duly organized, is validly existing in
good standing under the laws of the jurisdiction of
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its organization, has the power and authority
to own its property and to conduct its
business as described in the Disclosure Package and is duly qualified to transact business and
is in good standing in each jurisdiction in which the conduct of its business or its ownership or
leasing of property requires such qualification, except (i) to the extent that the failure to be so
qualified or be in good standing would not have a Material Adverse Effect on the Company and its
subsidiaries, taken as a whole and (ii) for jurisdictions not recognizing the legal concepts of
good standing or qualification. Except as set forth in the Disclosure Package and the Final
Memorandum, all of the issued shares of capital stock, or equity interests, as applicable of each
subsidiary of the Company have been duly and validly authorized and issued, are fully paid and
non-assessable and (except (i) for directors’ qualifying shares or foreign national qualifying
capital stock, and (ii) as pledged to secure indebtedness of the Company and/or its subsidiaries
pursuant to credit facilities, indentures and other instruments evidencing indebtedness as set
forth in the Exchange Act Reports of the Company, the Disclosure Package and the Final Memorandum
and existing on the date hereof) are owned directly by the Company, free and clear of all liens,
encumbrances, equities or claims.
(i) This Agreement has been duly authorized, executed and delivered by the Company.
(j) The Indenture has duly authorized, executed and, on the Closing Date will be, duly
delivered by, and will be a valid and binding agreement of, the Company, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’
rights generally and equitable principles of general applicability.
(k) The Securities have been duly authorized and, when executed and authenticated in
accordance with the provisions of the Indenture and delivered to and paid for by the Initial
Purchasers in accordance with the terms of this Agreement will be valid and binding obligations of
the Company and each Guarantor, as applicable, in each case enforceable in accordance with their
respective terms, subject to applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally and equitable principles of general applicability, and will be entitled
to the benefits of the Indenture.
(l) The Registration Rights Agreement has been duly authorized and, when executed and
delivered by the Company, the Guarantors and the Initial Purchasers, will be a valid and binding
obligation of the Company and each Guarantor, in each case enforceable in accordance with their
respective terms, subject to applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally and equitable principles of general applicability. The Company’s new
series of 8.25% senior notes due 2020 to be issued in exchange for the Securities pursuant to the
Registration Rights Agreement have been duly authorized.
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(m) The execution and delivery by the Company and the Guarantors of, and the performance by
the Company and the Guarantors of their respective
obligations under, this Agreement, the Indenture, the Registration Rights Agreement and the
Securities will not contravene (i) any provision of the certificate of limited partnership,
agreement of limited partnership, certificate of formation, limited liability company agreement,
certificate or articles of incorporation, or bylaws of the Company or any Guarantor, (ii) or any
agreement or other instrument binding upon the Company or any of its subsidiaries that is material
to the Company and its subsidiaries, taken as a whole, (iii) or any applicable law or judgment,
order or decree of any governmental body, agency or court having jurisdiction over the Company or
any subsidiary except that, in the case of clauses (ii) and (iii), for any contravention that would
not have a Material Adverse Effect on the Company. No consent, approval, authorization or order
of, or qualification with, any governmental body or agency is required for the performance by the
Company and the Guarantors of their respective obligations under this Agreement, the Indenture, or
the Securities, except (x) for such consent, approvals, authorizations, orders or qualifications
that have been obtained or where failure to do so would not have a Material Adverse Effect on the
Company and (y) for the registration of the Securities under the Act pursuant to the Registration
Rights Agreement, the qualification of the Indenture under the Trust Indenture Act and such as may
be required by the securities or Blue Sky laws of the various states in connection with the offer
and sale of the Securities.
(n) There has not occurred any material adverse change, or any development involving a
prospective material adverse change, in the condition, financial or otherwise, or in the earnings,
business or operations of the Company and its subsidiaries, taken as a whole, from that set forth
in the Disclosure Package.
(o) There are no legal or governmental proceedings pending or, to the knowledge of the
Company, threatened to which the Company or any of its subsidiaries is a party or to which any of
the properties of the Company or any of its subsidiaries is subject other than proceedings that are
disclosed or described in all material respects in the Disclosure Package or the Final Memorandum
and proceedings that are not expected to have a Material Adverse Effect, and there are no statutes,
regulations, contracts or other documents that are required to be described in the Disclosure
Package or the Final Memorandum that are not described in all material respects or filed, or
incorporated by reference as required.
(p) The Company is not, and after giving effect to the offering and sale of the Securities and
the application of the proceeds thereof as described in the Final Memorandum will not be, required
to register as an “investment company” as such term is defined in the Investment Company Act of
1940, as amended.
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(q) The Company and any subsidiary of the Company that is, or after giving effect to the
offering and sale of the Securities and the application of the proceeds thereof as described in the
Prospectus, will be, subject to regulation under the Public Utility Holding Company Act of 2005
(“PUHCA”) as a “holding
company,” as such term is defined in PUHCA, is exempt in accordance with 18 CFR § 366.3 from
the accounting, record-retention and reporting requirements of PUHCA.
(r) Except as set forth in the Disclosure Package or the Final Memorandum, each subsidiary of
the Company that is subject to regulation as a “public utility” as such term is defined in the
Federal Power Act (“FPA”) and that makes sales of energy or capacity that are not pursuant to a
state regulatory authority’s implementation of PURPA (as defined below) has an order from the
Federal Energy Regulatory Commission, such order not subject to any pending challenge,
investigation, complaint, or other proceeding (other than generic proceedings generally applicable
in the industry) (i) authorizing such subsidiary to engage in wholesale sales of electricity and,
to the extent permitted under its market-based rate tariff, other transactions, at market-based
rates and (y) granting such waivers and blanket authorizations as are customarily granted to
entities with market-based rate authority, including blanket authorizations to issue securities and
to assume liabilities pursuant to Section 204 of the FPA.
(s) With respect to any subsidiary that owns a “Qualifying Facility” (“QF”), as defined under
the Public Utility Regulatory Policies Act and the current rules and regulations promulgated
thereunder (“PURPA”), such facility is a QF under PURPA.
(t) Except as disclosed in the Disclosure Package or the Final Memorandum, and except for such
matters as would not, individually or in the aggregate, result in a Material Adverse Effect, the
Company and its subsidiaries (1) are conducting and have conducted their businesses, operations and
facilities in compliance with Environmental Laws (as defined below); (2) have duly obtained,
possess, maintain in full force and effect, and have fulfilled and performed all of their
obligations under any and all permits, licenses or registrations required under Environmental Law
(“Environmental Permits”); (3) have not received any notice from a governmental authority or any
other third party alleging any violation of Environmental Law or liability thereunder; (4) are not
subject to any pending or, to the best knowledge of the Company or any of its subsidiaries,
threatened claim in writing or other legal proceeding under any Environmental Laws against the
Company or any of its subsidiaries; and (5) do not have knowledge of any applicable Environmental
Laws, or any unsatisfied conditions in an Environmental Permit, that, individually or in the
aggregate, can reasonably be expected to require any material capital expenditures for either the
installation of new pollution control equipment, or a switch in a project’s fuel or any other
material modification of current operations in order to maintain the
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Company’s or the subsidiaries’
compliance with Environmental Law. As used in this paragraph, “Environmental Laws” means any and
all applicable foreign, federal, state and local laws and regulations, or any enforceable
administrative or judicial interpretation thereof, relating to pollution or the protection of human
health or the environment, including, without limitation, those relating to (i)
emissions, discharges or releases of Hazardous Substances into ambient air, surface water,
groundwater or land, (ii) the generation, manufacture, processing, distribution, use, treatment,
storage, disposal, release, transport or handling of, or exposure to, Hazardous Substances, (iii)
the protection of wildlife or endangered or threatened species, or (iv) the investigation,
remediation or cleanup of any Hazardous Substances. As used in this paragraph, “Hazardous
Substances” means pollutants, contaminants, hazardous substances, materials or wastes, petroleum,
petroleum products and their breakdown constituents, or any other chemical substance regulated
under Environmental Laws.
2. Agreements to Sell and Purchase. The Company hereby agrees to sell to the several Initial
Purchasers, and each Initial Purchaser, upon the basis of the representations and warranties herein
contained, but subject to the conditions hereinafter stated, agrees to sell to each Initial
Purchaser, and each Initial Purchaser agrees, severally and not jointly, to purchase from the
Company, at a purchase price of 98.75% of the principal amount thereof, the principal amount of
Securities set forth opposite such Initial Purchaser’s name in Schedule I hereto.
3. Payment and Delivery. Payment for the Initial Purchasers’ Securities shall be made by wire
transfer in immediately available funds, or other funds immediately available in New York City on
the closing date and time set forth in Schedule I hereto, or at such other time on the same or such
other date, not later than the fifth business day thereafter, as may be designated by you in
writing. The time and date of such payment are hereinafter referred to as the “Closing Date.”
Payment for the Securities shall be made against delivery to you on the Closing Date of the
Securities made through the facilities of The Depository Trust Company and any other relevant
clearing system, unless the Representatives shall otherwise instruct.
4. Offering by Initial Purchasers. (a) Each Initial Purchaser acknowledges that the
Securities have not been and will not be registered under the Act and may not be offered or sold
within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to
an exemption from, or in a transaction not subject to, the registration requirements of the Act.
(i) Each Initial Purchaser, severally and not jointly, represents and
warrants to and agrees with the Company that: it has not offered or sold, and
will not offer or sell, any Securities within the United States or to, or for the
account or benefit of, U.S. persons (x) as part of their distribution at any time
or (y) otherwise
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until 40 days after the later of the commencement of the
offering and the date of the closing of the offering except:
(A) | to those it reasonably believes to be “qualified institutional buyers” (as defined in Rule 144A under the Act) or | ||
(B) | in accordance with Rule 903 of Regulation S; |
(ii) neither it nor any person acting on its behalf has made or will make
offers or sales of the Securities in the United States by means of any form of
general solicitation or general advertising (within the meaning of Regulation D)
in the United States;
(iii) in connection with each sale pursuant to Section 4(b)(i)(A), it has
taken or will take reasonable steps to ensure that the purchaser of such
Securities is aware that such sale may be made in reliance on Rule 144A;
(iv) neither it, nor any of its Affiliates nor any person acting on its or
their behalf has engaged or will engage in any directed selling efforts (within
the meaning of Regulation S) with respect to the Securities;
(v) it is an “accredited investor” (as defined in Rule 501(a) of Regulation
D);
(vi) it has complied and will comply with the offering restrictions
requirement of Regulation S;
(vii) at or prior to the confirmation of sale of Securities (other than a
sale of Securities pursuant to Section 4(b)(i)(A) of this Agreement), it shall
have sent to each distributor, dealer or person receiving a selling concession,
fee or other remuneration that purchases Securities from it during the
distribution compliance period (within the meaning of Regulation S) a
confirmation or notice to substantially the following effect:
“The Securities covered hereby have not been registered under the Act
and may not be offered or sold within the United States or to, or for
the account or benefit of, U.S. persons (i) as part of their
distribution at any time or (ii) otherwise until 40 days after the later
of the
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commencement of the offering and the date of closing of the
offering, except in either case in accordance with Regulation S or Rule
144A under the Act. Additional restrictions on the offer and sale of the
Securities are described in the offering memorandum for the Securities.
Terms used in this paragraph have the meanings given to them by
Regulation S.”
(viii) it has only communicated or caused to be communicated and will only
communicate or cause to be communicated any invitation or inducement to engage in
investment activity (within the meaning of Section 21 of the Financial Services
and Markets Xxx 0000 (the “FSMA”)) received by it in connection with the issue or
sale of any Securities, in circumstances in which Section 21(1) of the FSMA does
not apply to the Company;
(ix) it has complied and will comply with all applicable provisions of the
FSMA with respect to anything done by it in relation to the Securities in, from
or otherwise involving the United Kingdom; and
in relation to each Member State of the European Economic Area which has
implemented the Offering Memorandum Directive (each, a “Relevant Member
State”), it has not made and will not make an offer to the public of any
Securities which are the subject of the offering contemplated by this
Agreement in that Relevant Member State, except that it may make an
offer to the public in that Relevant Member State of any Securities at
any time under the following exemptions under the Offering Memorandum
Directive, if they have been implemented in that Relevant Member State:
(A) | to legal entities which are authorized or regulated to operate in the financial markets or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities; | ||
(B) | to any legal entity which has two or more of (i) an average of at least 250 employees during the last financial year, (ii) a total balance sheet of more than €43,000,000 and (iii) an annual turnover of more than |
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€50,000,000, as shown in its last annual or consolidated accounts; |
(C) | to fewer than 100 natural or legal persons (other than qualified investors as defined in the Offering Memorandum Directive) subject to obtaining the prior written consent of the Representatives for any such offer; or | ||
(D) | in any other circumstances falling within Article 3(2) of the Offering Memorandum Directive; |
provided that no such offer of Securities shall result in a requirement for the publication by the
Company or any Initial Purchaser of a Offering Memorandum pursuant to Article 3 of the Offering
Memorandum Directive.
For the purposes of this provision, the expression an “offer to the public” in relation to any
Securities in any Relevant Member State means the communication in any form and by any means of
sufficient information on the terms of the offer and the Securities to be offered so as to enable
an investor to decide to purchase any Securities, as the same may be varied in that Member State by
any measure implementing the Offering Memorandum Directive in that Member State and the expression
“Offering Memorandum Directive” means Directive 2003/71/EC and includes any relevant implementing
measure in each Relevant Member State.
5. Conditions to the Initial Purchasers’ Obligations. The several obligations of the Initial
Purchasers are subject to the following conditions:
(a) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date:
(i) there shall not have occurred any downgrading, nor shall the Company have
received any notice from any “nationally recognized statistical rating organization,” as
such term is defined for purposes of Rule 436(g)(2) under the Act of any intended or
potential downgrading or of any review for a possible change that does not indicate the
direction of the possible change, in the rating accorded the Company or any of the
securities of the Company or any of its subsidiaries or in the rating outlook for the
Company; and
(ii) there shall not have occurred any change, or any development involving a
prospective change, in the condition, financial or otherwise, or in the earnings, business
or operations of the Company and
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its subsidiaries, taken as a whole, from that set forth
in the Disclosure Package that, in the judgment of the Representatives, is material and
adverse and that makes it, in the judgment of the Representatives, impracticable or
inadvisable to proceed with the offer, sale and delivery of the securities, or market the
Securities on the terms and in the manner contemplated in the this agreement and the
Disclosure Package.
(b) The Initial Purchasers shall have received on the Closing Date a certificate, dated the
Closing Date and signed by an executive officer of the Company, to the effect set forth in Section
5(a)(i) above and to the effect that the representations and warranties of the Company contained in
this Agreement that
are not qualified by materiality are true and correct in all material respects, and that the
representations and warranties of the Company contained in this Agreement that are qualified by
materiality are true and correct, in each case, as of the Closing Date, and that the Company has
complied in all material respects with all of the agreements and satisfied all of the conditions on
its part to be performed or satisfied hereunder on or before the Closing Date.
The officer signing and delivering such certificate may rely upon the best of his or her
knowledge as to proceedings threatened.
(c) The Initial Purchasers shall have received on the Closing Date an opinion and a negative
assurance letter of Xxxxxxxx & Xxxxx LLP, outside counsel for the Company, dated the Closing Date,
to the effect set forth on Schedule III. Additionally, Xxxxxxx Xxxxxxxx, General Counsel of the
Company, and other local counsel of the Company shall provide opinions, dated the Closing Date, as
the Representatives shall reasonably request.
(d) The Initial Purchasers shall have received on the Closing Date an opinion and a negative
assurance letter of Xxxxxx & Xxxxxxx LLP, counsel for the Initial Purchasers, dated the Closing
Date, in form and substance satisfactory to the Initial Purchasers.
(e) The Initial Purchasers shall have received, on each of the date hereof and the Closing
Date, a letter dated the date hereof or the Closing Date, as the case may be, in form and substance
satisfactory to the Initial Purchasers, from KPMG LLP, independent public accountants, containing
statements and information of the type ordinarily included in accountants’ “comfort letters” to
Initial Purchasers with respect to the financial statements and certain financial information
contained in the Disclosure Package and the Final Memorandum; provided that the letter delivered on
the Closing Date shall use a “cut-off date” not earlier than the date hereof.
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6. Covenants of the Company. The Company covenants with each Initial Purchaser as follows:
(a) To furnish to each Initial Purchaser and to counsel for the Initial Purchasers, without
charge, during the period referred to in Section 6(f) below, as many copies of the materials
contained in the Disclosure Package and the Final Memorandum and any amendments and supplements
thereto as they may reasonably request.
(b) To prepare a final term sheet, containing solely a description of the final terms of the
Securities and the offering thereof, in the form approved by you and attached as Schedule II hereto
(c) Before amending or supplementing the Disclosure Package or the Final Memorandum, to
furnish to the Representatives a copy of each such
proposed amendment or supplement and not to file, use or distribute any such proposed
amendment or supplement to which the Representatives reasonably object.
(d) To furnish to the Representatives a copy of each proposed Issuer Written Information to be
prepared by or on behalf of, used by, or referred to by the Company and not to use or refer to any
proposed any Issuer Written Information to which the Representatives reasonably object.
(e) If the Disclosure Package is being used to solicit offers to buy the Securities at a time
when the Final Memorandum is not yet available to prospective purchasers and any event shall occur
or condition exist as a result of which the Disclosure Package would include an untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances, not misleading, or if any
event shall occur or condition exist as a result of which, in the reasonable opinion of counsel for
the Initial Purchasers or counsel for the Company, it is necessary to amend or supplement the
Disclosure Package to comply with applicable law, the Company will promptly (i) notify the
Representatives of any such event; (ii) subject to the requirements of Section 6(c), prepare an
amendment or supplement that will correct such statement or omission or effect such compliance; and
(iii) supply any supplemented or amended Disclosure Package to the several Initial Purchasers and
counsel for the Initial Purchasers without charge in such quantities as they may reasonably
request.
(f) If at any time prior to the completion of the sale of the Securities by the Initial
Purchasers (as determined by the Representatives), any event shall occur or condition exist as a
result of which the Final Memorandum, as then amended or supplemented, would include any untrue
statement of a material fact or omit to state any material fact necessary to make the statements
therein, in the
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light of the circumstances under which they were made or the circumstances then
prevailing, not misleading, or if it should be necessary to amend or supplement the Final
Memorandum to comply with applicable law, the Company will promptly (i) notify the Representatives
of any such event; (ii) subject to the requirements of Section 6(c), prepare an amendment or
supplement that will correct such statement or omission or effect such compliance; and (iii) supply
any supplemented or amended Final Memorandum to the several Initial Purchasers and counsel for the
Initial Purchasers without charge in such quantities as they may reasonably request.
(g) To use its reasonable best efforts to qualify the Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions as you shall reasonably request; provided,
however, that nothing contained herein shall require the Company to qualify to do business in any
jurisdiction, to execute a general consent to service of process in any state or to subject itself
to taxation in any jurisdiction in which it is otherwise not so subject.
(h) The Company will not, and will not permit any of its Affiliates to, resell any Securities
that have been acquired by any of them prior to the earlier of (i) the one year anniversary of the
Closing Date or (ii) the consummation of the exchange offer or effective date of any shelf
registration statement pursuant to the Registration Rights Agreement.
(i) None of the Company, its Affiliates, or any person acting on its or their behalf will,
directly or indirectly, make offers or sales of any security, or solicit offers to buy any
security, under circumstances that would require the registration of the Securities under the Act.
(j) None of the Company, its Affiliates, or any person acting on its or their behalf will
engage in any directed selling efforts (within the meaning of Regulation S) with respect to the
Securities; and each of them will comply with the offering restrictions requirement of Regulation
S.
(k) None of the Company, its Affiliates, or any person acting on its or their behalf will
engage in any form of general solicitation or general advertising (within the meaning of Regulation
D) in connection with any offer or sale of the Securities in the United States.
(l) For so long as any of the Securities are outstanding and are “restricted securities”
within the meaning of Rule 144(a)(3) under the Act, the Company, during any period in which it is
not subject to and in compliance with Section 13 or 15(d) of the Exchange Act or it is not exempt
from such reporting requirements pursuant to and in compliance with Rule 12g3-2(b) under the
Exchange Act, will provide to each holder of such restricted securities and to each prospective
purchaser (as designated by such holder) of such restricted securities,
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upon the request of such
holder or prospective purchaser, any information required to be provided by Rule 144A(d)(4) under
the Act. This covenant is intended to be for the benefit of the holders, and the prospective
purchasers designated by such holders, from time to time of such restricted securities.
(m) Each of the Securities will bear, to the extent applicable, the legend contained in
“Transfer Restrictions” in the Preliminary Memorandum and the Final Memorandum for the time period
and upon the other terms stated therein.
(n) Whether or not the transactions contemplated in this Agreement are consummated or this
Agreement is terminated, to pay or cause to be paid the costs and expenses relating to the
following matters: (i) the fees, disbursements and expenses of the Company’s counsel and the
Company’s accountants in connection with the registration and delivery of the Securities under the
Act and all other fees or expenses in connection with the preparation any preliminary memorandum,
the Disclosure Package, the Final Memorandum, any Issuer Written Information prepared by or on
behalf of, used by, or referred to by the Company and amendments and supplements to any of the
foregoing, all printing costs associated therewith, and the mailing and delivering of copies
thereof to the
Initial Purchasers and dealers, in the quantities hereinabove specified, (ii) all costs and
expenses related to the transfer and delivery of the Securities to the Initial Purchasers,
including any transfer or other taxes payable thereon, (iii) the cost of printing or producing any
Blue Sky or legal investment memorandum in connection with the offer and sale of the Securities
under state securities laws and all expenses in connection with the qualification of the Securities
for offer and sale under state securities laws as provided in Section 6(e) hereof, including filing
fees and the reasonable fees and disbursements of counsel for the Initial Purchasers in connection
with such qualification and in connection with the Blue Sky or legal investment memorandum, which
shall be $15,000 in the aggregate for this offering, (iv) any fees charged by the rating agencies
for the rating of the Securities, (v) the cost of the preparation, issuance and delivery of the
Securities, (vi) the costs and charges of any trustee, transfer agent, registrar or depositary,
(vii) the document production charges and expenses associated with printing this Agreement and
(viii) all other costs and expenses incident to the performance of the obligations of the Company
hereunder for which provision is not otherwise made in this Section; provided however that any
costs and expenses of the Company relating to investor presentations on any “road show” undertaken
in connection with the marketing or the offering of the Securities, including, without limitation,
expenses associated with the preparation or dissemination of any electronic road show, expenses
associated with the production of road show slides and graphics, fees and expenses of any
consultants engaged in connection with the road show presentations, travel and lodging expenses of
the representatives and officers of the Company and any such consultants, and the cost of any
aircraft chartered in connection with the road show, shall be paid or caused to be paid by
14
the Initial Purchasers. It is understood, however, that except as provided in this Section, Section 7
entitled “Indemnity and Contribution,” and the last paragraph of Section 9 below, the Initial
Purchasers will pay all of their costs and expenses, including fees and disbursements of their
counsel, transfer taxes payable on resale of any of the Securities by them and any advertising
expenses connected with any offers they may make.
(o) During the period beginning on the date hereof and continuing to and including the Closing
Date, not to offer, sell, contract to sell or otherwise dispose of any debt securities of the
Company or warrants to purchase or otherwise acquire debt securities of the Company substantially
similar to the Securities (other than (i) the Securities, (ii) commercial paper issued in the
ordinary course of business or (iii) securities or warrants permitted with the prior written
consent of the Representatives, provided that nothing in this paragraph (l) shall be construed as a
limitation on the Company’s ability to consummate, or prevent the Company from consummating the
transactions as described in the Disclosure Package and the Final Memorandum under the heading “The
Transactions.”
7. Indemnity and Contribution. (a) The Company agrees to indemnify and hold harmless each
Initial Purchaser, each person, if any, who controls any
Initial Purchaser within the meaning of either Section 15 of the Act or Section 20 of the
Exchange Act and each affiliate of any Initial Purchaser from and against any and all losses,
claims, damages and liabilities (including, without limitation, any legal or other expenses
reasonably incurred in connection with defending or investigating any such action or claim) caused
by any untrue statement or alleged untrue statement of a material fact contained in any preliminary
memorandum, the Disclosure Package, any Issuer Written Information that the Company has used or
referred to in connection with the Act or the Final Memorandum or any amendment or supplement
thereto (if the Company furnished any amendments or supplements thereto), or caused by any omission
or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein, (i) with respect to any preliminary memorandum, the Disclosure
Package, any Issuer Written Information that the Company has used or referred to in connection with
the Act or the Final Memorandum or any amendment or supplement thereto (if the Company furnished
any amendments or supplements thereto), not misleading in light of the circumstances under which
they were made, except in each case insofar as such losses, claims, damages or liabilities are
caused by any such untrue statement or omission or alleged untrue statement or omission based upon
information relating to any Initial Purchaser furnished to the Company in writing by such Initial
Purchaser through the Representatives expressly for use therein.
(b) Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless
the Company, its directors, its principal executive
15
officer or officers, its principal financial
officer, its controller or principal accounting officer, and each person if any, who controls the
Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act to the
same extent as the foregoing indemnity from the Company to such Initial Purchaser, but only with
reference to information relating to such Initial Purchaser furnished to the Company in writing by
such Initial Purchaser through the Representatives expressly for use in the any preliminary
prospectus, the Disclosure Package, any Issuer Written Information that the Company has used or
referred to in connection with the Act or the Final Memorandum or any amendment or supplement
thereto. The Company acknowledges that the statement set forth on the cover of the Final
Memorandum that “The initial purchasers expect to deliver book-entry interests in the notes to
purchasers on or about August 20, 2010 through the facilities of The Depository Trust Company
(“DTC”) and the statements in the Preliminary Memorandum and the Final Memorandum in the third,
eight and ninth paragraphs under the caption “Plan of Distribution” related to the terms of the
offering, short sales, stabilization and syndicate covering transactions constitute the only
information furnished in writing by or on behalf of the Initial Purchasers for inclusion in the
Preliminary Memorandum or the Final Memorandum or in any amendment or supplement thereto.
(c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 7(a) or 7(b),
such person (the “indemnified party”) shall promptly notify the person against whom such indemnity
may be sought (the “indemnifying party”) in writing and the indemnifying party, upon request of the
indemnified party, shall retain counsel chosen by the indemnifying party and reasonably
satisfactory to the indemnified party to represent the indemnified party and any others entitled to
indemnification pursuant to this section 7 the indemnifying party may designate in such proceeding
and shall pay the reasonably incurred fees and expenses of such counsel related to such proceeding
as incurred. In any such proceeding, any indemnified party shall have the right to retain its own
counsel, but the reasonably incurred fees and expenses of such counsel shall be at the expense of
such indemnified party unless (i) the indemnifying party and the indemnified party shall have
mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include both the indemnifying party and the indemnified party and
representation of both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them. It is understood and agreed that the indemnifying
party shall not, in connection with any proceeding or related proceedings in the same jurisdiction,
be liable for the reasonably incurred fees and expenses of more than one separate firm (in addition
to any local counsel) for all such indemnified parties and that all such reasonably incurred fees
and expenses shall be reimbursed as they are incurred. Such firm
16
shall be designated in writing by
the Representatives in the case of parties indemnified pursuant to Section 7(a), and by the
Company, in the case of parties indemnified pursuant to Section 7(b). The indemnifying party shall
not be liable for any settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party
agrees to indemnify the indemnified party from and against any loss or liability by reason of such
settlement or judgment. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened proceeding in respect of
which any indemnified party is or could have been a party and indemnity could have been sought
hereunder by such indemnified party, unless such settlement includes an unconditional release of
such indemnified party from all liability on claims that are the subject matter of such proceeding.
(d) To the extent the indemnification provided for in Section 7(a) or Section 7(b) is
unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or
liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the indemnifying party or
parties on the one hand and the indemnified party or parties on the other hand from the offering of
the Securities or (ii) if the allocation
provided by clause 7(d)(i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause 7(d)(i) above but also
the relative fault of the indemnifying party or parties on the one hand and of the indemnified
party or parties on the other hand in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand and the Initial
Purchasers on the other hand in connection with the offering of the Securities shall be deemed to
be in the same respective proportions as the net proceeds (before deducting expenses) received by
the Company from the sale of Securities and the total underwriting discounts and commissions
received by the Initial Purchasers in connection therewith, bear to the aggregate offering price of
the Securities. The relative fault of the Company on the one hand and the Initial Purchasers on
the other hand shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by the Company or by the Initial Purchasers and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Initial Purchasers’ respective obligations to contribute pursuant to
this Section 7 are several in proportion to the respective principal amounts of Securities they
have purchased hereunder, and not joint.
17
(e) The Company and the Initial Purchasers agree that it would not be just or equitable if
contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Initial
Purchasers were treated as one entity for such purpose) or by any other method of allocation that
does not take account of the equitable considerations referred to in Section 7(d). The amount paid
or payable by an indemnified party as a result of the losses, claims, damages and liabilities
referred to in Section 7(d) shall be deemed to include, subject to the limitations set forth above,
any legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 7, no Initial Purchaser shall be required to contribute any amount in excess of the amount
by which the total price at which the Securities underwritten by it and distributed to the public
were offered to the public exceeds the amount of any damages that such Initial Purchaser has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The remedies provided for in this Section 7 are not exclusive and
shall not limit any rights or remedies which may otherwise be available to any indemnified party at
law or in equity.
(f) The indemnity and contribution provisions contained in this Section 7 and the
representations, warranties and other statements of the Company contained in this Agreement shall
remain operative and in full force and
effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or
on behalf of any Initial Purchaser, any person controlling any Initial Purchaser or any affiliate
of any Initial Purchaser or by or on behalf of the Company, its officers or directors or any person
controlling the Company and (iii) acceptance of and payment for any of the Securities.
8. Termination. The Initial Purchasers may terminate this Agreement by notice given by the
Representatives to the Company, if after the execution and delivery of this Agreement and prior to
the Closing Date (i) trading generally shall have been suspended or materially limited on, or by,
as the case may be, any of the New York Stock Exchange or the Nasdaq National Market, (ii) trading
of any securities of the Company shall have been suspended on the New York Stock Exchange, (iii) a
material disruption in securities settlement, payment or clearance services in the United States
shall have occurred, (iv) any moratorium on commercial banking activities shall have been declared
by Federal or New York State authorities or (v) there shall have occurred any outbreak or
escalation of hostilities, or any change in financial markets or any calamity or crisis that, in
your judgment, is material and adverse and which, singly or together with any other event specified
in this clause (v), makes it, in the Representatives judgment, impracticable or inadvisable to
proceed with the offer, sale or delivery of the
18
Securities on the terms and in the manner
contemplated in the Disclosure Package or the Prospectus.
9. Effectiveness; Defaulting Initial Purchasers. This Agreement shall become effective upon
the execution and delivery hereof by the parties hereto.
If, on the Closing Date, any one or more of the Initial Purchasers shall fail or refuse to
purchase Securities that it has or they have agreed to purchase hereunder on such date, and the
aggregate principal amount of Securities which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase is not more than one-tenth of the aggregate
principal amount of the Securities to be purchased on such date, the other Initial Purchasers shall
be obligated severally in the proportions that the principal amount of Securities set forth
opposite their respective names in Schedule I bears to the aggregate principal amount of Securities
set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other
proportions as you may specify, to purchase the Securities which such defaulting Initial Purchaser
or Initial Purchasers agreed but failed or refused to purchase on such date; provided that in no
event shall the principal amount of Securities that any Initial Purchaser has agreed to purchase
pursuant to this Agreement be increased pursuant to this Section 9 by an amount in excess of
one-ninth of such principal amount of Securities without the written consent of such Initial
Purchaser. If, on the Closing Date, any Initial Purchaser or Initial Purchasers shall fail or
refuse to purchase Securities and the aggregate principal amount of Securities with respect to
which such default occurs is more than one-tenth of the aggregate principal amount of Securities to
be purchased on such date, and arrangements satisfactory to you and
the Company for the purchase of such Securities are not made within 36 hours after such
default, this Agreement shall terminate without liability on the part of any non-defaulting Initial
Purchaser or the Company. In any such case either you or the Company shall have the right to
postpone the Closing Date, but in no event for longer than seven days, in order that the required
changes, if any, in the Disclosure Package, in the Final Memorandum or in any other documents or
arrangements may be effected. Any action taken under this paragraph shall not relieve any
defaulting Initial Purchaser from liability in respect of any default of such Initial Purchaser
under this Agreement.
If this Agreement shall be terminated by the Initial Purchasers, or any of them, because of
any failure or refusal on the part of the Company to comply with the terms or to fulfill any of the
conditions of this Agreement (other than by reason of a default by any of the Initial Purchasers
described in the preceding paragraph), or if for any reason the Company shall be unable to perform
its obligations under this Agreement the Company will reimburse the Initial Purchasers or such
Initial Purchasers as have so terminated this Agreement with respect to themselves, severally,
through the Representatives for all out-of-pocket expenses (including the reasonable fees and
disbursements of their counsel)
19
reasonably incurred by such Initial Purchasers in connection with
this Agreement or the offering contemplated hereunder.
10. Waiver of Tax Confidentiality. Notwithstanding anything herein to the contrary,
purchasers of the Securities (and each employee, representative or other agent of a purchaser) may
disclose to any and all persons, without limitation of any kind, the U.S. tax treatment and U.S.
tax structure of any transaction contemplated herein and all materials of any kind (including
opinions or other tax analyses) that are provided to the purchasers of the Securities relating to
such U.S. tax treatment and U.S tax structure, other than any information for which nondisclosure
is reasonably necessary in order to comply with applicable securities laws.
11. Entire Agreement. (a) This Agreement, together with any contemporaneous written
agreements and any prior written agreements (to the extent not superseded by this Agreement) that
relate to the offering of the Securities, represents the entire agreement between the Company and
the Initial Purchasers with respect to the preparation of any preliminary memorandum, the
Disclosure Package, the Final Memorandum, the conduct of the offering, and the purchase and sale of
the Securities.
(b) The Company acknowledges that in connection with the offering of the Securities: (i) the
Initial Purchasers have acted at arms length, are not agents of, and owe no fiduciary duties to,
the Company or any other person, (ii) the Initial Purchasers owe the Company only those duties and
obligations set forth in this Agreement and prior written agreements (to the extent not superseded
by this Agreement), if any, and (iii) the Initial Purchasers may have interests that differ from
those of the Company. The Company waives to the full extent
permitted by applicable law any claims it may have against the Initial Purchasers arising from
an alleged breach of fiduciary duty in connection with the offering of the Securities.
12. Counterparts. This Agreement may be signed in two or more counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument.
13. Applicable Law. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York.
14. Headings. The headings of the sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed a part of this Agreement.
15. Definitions. The terms that follow, when used in this Agreement, shall have the meanings
indicated
20
“Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder.
“Affiliate” shall have the meaning specified in Rule 501(b) of Regulation D.
“Commission” shall mean the Securities and Exchange Commission.
“Disclosure Package” shall mean (i) the Preliminary Memorandum, as amended or supplemented at
the Execution Time, (ii) the final term sheet prepared pursuant to Section 6(b) hereto and in the
form attached as Schedule II hereto and (iii) any Issuer Written Information.
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.
“Execution Time” shall mean the date and time that this Agreement is executed and delivered by
the parties hereto.
“Investment Company Act” shall mean the Investment Company Act of 1940, as amended, and the
rules and regulations of the Commission promulgated thereunder.
“Issuer Written Information” shall mean any writings in addition to the Preliminary Memorandum
that the parties expressly agree in writing to treat as part of the Disclosure Package.
“Regulation D” shall mean Regulation D under the Act.
“Regulation S” shall mean Regulation S under the Act.
“Regulation S-X” shall mean Regulation S-X under the Act.
“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules
and regulations of the Commission promulgated thereunder.
16. Notices. All communications hereunder shall be in writing and effective only upon receipt
and if to the Initial Purchasers shall be delivered, mailed or sent to you at the address set forth
in Schedule I hereto; and if to the Company shall be delivered, mailed or sent to the address set
forth in Schedule I hereto
21
[Signatures follow]
22
If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall
represent a binding agreement between the Company and the several Initial Purchasers.
Very truly yours, NRG ENERGY, INC. |
||||
By: | /s/ Xxxxxxxxxxx Xxxxx | |||
Name: | Xxxxxxxxxxx Xxxxx | |||
Title: | Vice President and Treasurer | |||
GUARANTORS:
Xxxxxx Kill Power LLC
Astoria Gas Turbine Power LLC
Berrians I Gas Turbine Power LLC
Big Cajun II Unit 4 LLC
Cabrillo Power I LLC
Cabrillo Power II LLC
Carbon Management Solutions LLC
Clean Edge Energy LLC
Conemaugh Power LLC
Connecticut Jet Power LLC
Devon Power LLC
Dunkirk Power LLC
Eastern Sierra Energy Company
El Segundo Power II LLC
El Segundo Power, LLC
Xxxxxxx IGCC LLC
Xxxxxxx Power LLC
Indian River IGCC LLC
Indian River Operations Inc.
Indian River Power LLC
Xxxxx River Power LLC
Keystone Power LLC
Astoria Gas Turbine Power LLC
Berrians I Gas Turbine Power LLC
Big Cajun II Unit 4 LLC
Cabrillo Power I LLC
Cabrillo Power II LLC
Carbon Management Solutions LLC
Clean Edge Energy LLC
Conemaugh Power LLC
Connecticut Jet Power LLC
Devon Power LLC
Dunkirk Power LLC
Eastern Sierra Energy Company
El Segundo Power II LLC
El Segundo Power, LLC
Xxxxxxx IGCC LLC
Xxxxxxx Power LLC
Indian River IGCC LLC
Indian River Operations Inc.
Indian River Power LLC
Xxxxx River Power LLC
Keystone Power LLC
Xxxxxxxx Wind Power, LLC
Louisiana Generating LLC
Middletown Power LLC
Montville IGCC LLC
Montville Power LLC
NEO Corporation
NEO Freehold-Gen LLC
NEO Power Services Inc.
New Xxxxx XX, LLC
Norwalk Power LLC
NRG Affiliate Services Inc.
NRG Artesian Energy LLC
NRG Xxxxxx Kill Operations Inc.
NRG Astoria Gas Turbine Operations Inc.
NRG Bayou Cove LLC
NRG Cabrillo Power Operations Inc.
NRG California Peaker Operations LLC
NRG Cedar Bayou Development Company, LLC
NRG Connecticut Affiliate Services Inc.
NRG Devon Operations Inc.
NRG Dunkirk Operations Inc.
NRG El Segundo Operations Inc.
NRG Generation Holdings, Inc.
NRG Xxxxxxx Operations Inc.
NRG International LLC
NRG MidAtlantic Affiliate Services Inc.
NRG Middletown Operations Inc.
NRG Montville Operations Inc.
NRG New Jersey Energy Sales LLC
NRG New Roads Holdings LLC
NRG North Central Operations Inc.
NRG Northeast Affiliate Services Inc.
NRG Norwalk Harbor Operations Inc.
NRG Operating Services, Inc.
NRG Oswego Harbor Power Operations Inc.
NRG Power Marketing LLC
NRG Retail LLC
NRG Saguaro Operations Inc.
NRG South Central Affiliate Services Inc.
Louisiana Generating LLC
Middletown Power LLC
Montville IGCC LLC
Montville Power LLC
NEO Corporation
NEO Freehold-Gen LLC
NEO Power Services Inc.
New Xxxxx XX, LLC
Norwalk Power LLC
NRG Affiliate Services Inc.
NRG Artesian Energy LLC
NRG Xxxxxx Kill Operations Inc.
NRG Astoria Gas Turbine Operations Inc.
NRG Bayou Cove LLC
NRG Cabrillo Power Operations Inc.
NRG California Peaker Operations LLC
NRG Cedar Bayou Development Company, LLC
NRG Connecticut Affiliate Services Inc.
NRG Devon Operations Inc.
NRG Dunkirk Operations Inc.
NRG El Segundo Operations Inc.
NRG Generation Holdings, Inc.
NRG Xxxxxxx Operations Inc.
NRG International LLC
NRG MidAtlantic Affiliate Services Inc.
NRG Middletown Operations Inc.
NRG Montville Operations Inc.
NRG New Jersey Energy Sales LLC
NRG New Roads Holdings LLC
NRG North Central Operations Inc.
NRG Northeast Affiliate Services Inc.
NRG Norwalk Harbor Operations Inc.
NRG Operating Services, Inc.
NRG Oswego Harbor Power Operations Inc.
NRG Power Marketing LLC
NRG Retail LLC
NRG Saguaro Operations Inc.
NRG South Central Affiliate Services Inc.
NRG South Central Generating LLC
NRG South Central Operations Inc.
NRG Texas C&I Supply LLC
NRG Texas Holding Inc.
NRG Texas LLC
NRG Texas Power LLC
NRG West Coast LLC
NRG Western Affiliate Services Inc.
Oswego Harbor Power LLC
RE Retail Receivables, LLC
Reliant Energy Power Supply, LLC
Reliant Energy Retail Holdings, LLC
Reliant Energy Retail Services, LLC
Reliant Energy Services Texas, LLC
Reliant Energy Texas Retail, LLC
RERH Holdings, LLC
Saguaro Power LLC
Somerset Operations Inc.
Somerset Power LLC
Texas Genco Financing Corp.
Texas Xxxxx XX, LLC
Texas Genco Holdings, Inc.
Texas Xxxxx XX, LLC
Texas Genco Operating Services, LLC
Vienna Operations Inc.
Vienna Power LLC
WCP (Generation) Holdings LLC
West Coast Power LLC
NRG South Central Operations Inc.
NRG Texas C&I Supply LLC
NRG Texas Holding Inc.
NRG Texas LLC
NRG Texas Power LLC
NRG West Coast LLC
NRG Western Affiliate Services Inc.
Oswego Harbor Power LLC
RE Retail Receivables, LLC
Reliant Energy Power Supply, LLC
Reliant Energy Retail Holdings, LLC
Reliant Energy Retail Services, LLC
Reliant Energy Services Texas, LLC
Reliant Energy Texas Retail, LLC
RERH Holdings, LLC
Saguaro Power LLC
Somerset Operations Inc.
Somerset Power LLC
Texas Genco Financing Corp.
Texas Xxxxx XX, LLC
Texas Genco Holdings, Inc.
Texas Xxxxx XX, LLC
Texas Genco Operating Services, LLC
Vienna Operations Inc.
Vienna Power LLC
WCP (Generation) Holdings LLC
West Coast Power LLC
By: | /s/ Xxxxxxxxxxx Xxxxx | |||
Name: | Xxxxxxxxxxx Xxxxx | |||
Title: | Treasurer | |||
Elbow Creek Wind Project LLC |
||||
By: | /s/ Xxxxxxxxxxx Xxxxx | |||
Name: | Xxxxxxxxxxx Xxxxx | |||
Title: | Controller |
GCP Funding Company, LLC |
||||
By: | /s/ Xxxxxxxxxxx Xxxxx | |||
Name: | Xxxxxxxxxxx Xxxxx | |||
Title: | Management Board Member | |||
NRG Construction LLC |
||||
By: | /s/ Xxxxxx Xxxxx | |||
Name: | Xxxxxx Xxxxx | |||
Title: | Treasurer | |||
NRG Energy Services LLC |
||||
By: | /s/ Xxxxxxx X. Xxxxxxx | |||
Name: | Xxxxxxx X. Xxxxxxx | |||
Title: | Treasurer | |||
NRG South Texas LP By Texas Xxxxx XX, LLC, its General Partner |
||||
By: | /s/ Xxxxxxxxxxx Xxxxx | |||
Name: | Xxxxxxxxxxx Xxxxx | |||
Title: | Treasurer | |||
Texas Genco Services, LP By New Xxxxx XX, LLC, its General Partner |
||||
By: | /s/ Xxxxxxxxxxx Xxxxx | |||
Name: | Xxxxxxxxxxx Xxxxx | |||
Title: | Treasurer |
Accepted as of the date hereof
CITIGROUP GLOBAL MARKETS INC. |
||||
By: | /s/ Xxxxxxxx Xxxxxx | |||
Name: | Xxxxxxxx Xxxxxx | |||
Title: | Vice President | |||
BANC OF AMERICA SECURITIES LLC |
||||
By: | /s/ Xxxx Xxxx | |||
Name: | Xxxx Xxxx | |||
Title: | Managing Director | |||
DEUTSCHE BANK SECURITIES INC. |
||||
By: | /s/ Xxxxx Xxxxx | |||
Name: | Xxxxx Xxxxx | |||
Title: | Managing Director | |||
By: | /s/ Xxxxx Xxxxxx | |||
Name: | Xxxxx Xxxxxx | |||
Title: | Managing Director | |||
Acting severally on behalf of themselves and the several Initial Purchasers
named in Schedule I hereto
SCHEDULE I
Principal Amount of Securities | ||||
Initial Purchasers | to be Purchased (U.S.$) | |||
Citigroup Global Markets Inc. |
$ | 275,000,000 | ||
Deutsche Bank Securities Inc. |
$ | 192,500,000 | ||
Banc of America Securities LLC |
$ | 192,500,000 | ||
BNP Paribas Securities Corp. |
$ | 64,000,000 | ||
Credit Agricole Securities (USA) Inc. |
$ | 64,000,000 | ||
ING Financial Markets LLC |
$ | 64,000,000 | ||
X.X. Xxxxxx Securities Inc. |
$ | 64,000,000 | ||
Xxxxxx Xxxxxxx & Co. Incorporated |
$ | 64,000,000 | ||
RBS Securities Inc. |
$ | 120,000,000 | ||
Total |
$ | 1,100,000,000 |
SCHEDULE II
PRICING TERM SHEET
Dated August 17, 2010
NRG Energy, Inc.
$1,100,000,000 8.25% Senior Notes due 2020
$1,100,000,000 8.25% Senior Notes due 2020
The information in this term sheet supplements the Company’s preliminary offering memorandum,
dated August 17, 2010 (the “Preliminary Offering Memorandum”). This term sheet is qualified in
its entirety by reference to the Preliminary Offering Memorandum.
Term Sheet
Issuer:
|
NRG Energy, Inc. | |||
Title of securities:
|
8.25% Senior Notes due 2020 | |||
Face Amount:
|
$ 1,100,000,000 | |||
Maturity:
|
September 1, 2020
|
|||
Price:
|
100% | |||
Gross Proceeds:
|
$ 1,100,000,000 | |||
Coupon:
|
8.25% | |||
Yield:
|
8.25% | |||
Interest Payment Dates:
|
March 1 and September 1, commencing March 1, 2011 | |||
Record Dates:
|
February 15 and August 15 | |||
Optional Redemption:
|
On and after: | |||
September 1, 2015 104.125%
|
||||
September 1, 2016 102.750%
|
||||
September 1, 2017 101.375%
|
||||
September 1, 2018 100.000%
|
||||
Equity Clawback:
|
Prior to September 1, 2013: up to 35% at 108.250% |
Make-Whole Redemption:
|
Prior to September 1, 2015 at a make-whole premium based on treasuries +50 bps | |||
Change of Control:
|
101% | |||
Ranking:
|
Senior unsecured obligations | |||
Settlement date:
|
August 20, 2010 (T+3) | |||
Reference Treasury:
|
2.625% TSY due August 15, 2020 | |||
Spread to Treasury:
|
+561 bps | |||
Denominations:
|
Multiples of $5,000 | |||
Distribution:
|
144A / Regulation S with registration rights | |||
Ratings:
|
B1/BB- | |||
Joint Book-Running Managers:
|
Citigroup Global Markets Inc. Banc of America Securities LLC Deutsche Bank Securities Inc. | |||
Co-Managers:
|
BNP Paribas Securities Corp. Credit Agricole Securities (USA) Inc. ING Financial Markets LLC X.X. Xxxxxx Securities Inc. Xxxxxx Xxxxxxx & Co. Incorporated RBS Securities Inc. | |||
CUSIP:
|
144A: 629377 BH4 | |||
Reg S: U66962 AE8 | ||||
ISIN:
|
144A: US629377BH43 | |||
Reg S: USU66962AE87 |
The notes and guarantees have not been registered under the Securities Act of 1933, as amended (the
“Act”), and may not be offered or sold within the United States or to, or for the account or
benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Act. Accordingly, the notes and guarantees are being offered
and sold only (a) to “qualified institutional buyers” (as defined in Rule 144A under the Act) and
(b) outside the United States to non-U.S. persons in compliance with Regulation S under the Act.
For details about eligible offers, deemed representations and agreements by investors and transfer
restrictions, see “Notice to Investors” in the Preliminary Offering Memorandum.
ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND
SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A
RESULT
OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.
SCHEDULE III
Xxxxxxxx & Xxxxx LLP Opinion and Negative Assurance Letter
See attached.