NRG Energy Announces Increase to Revolving Credit Facility Commitments
Centrica PLC’s Shareholders Approve Acquisition Of Direct Energy By NRG
August 21, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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NRG Energy, Inc. announced that NRG’s previously reported proposed acquisition of Direct Energy, a North American business owned by Centrica PLC, was approved on August 20, 2020 by the requisite vote of Centrica PLC’s shareholders at a general meeting of Centrica's shareholders.
Closing for the previously announced transaction is expected by year end 2020, NRG said. The transaction remains subject to other customary closing conditions, consents and regulatory approvals, including approval by the Federal Energy Regulatory Commission (FERC). In addition, NRG has submitted the transaction to the U.S. Department of Justice and the Federal Trade Commission under the Hart-Scott-Rodino Act, and the Commissioner of Competition under the Canadian Competition Act.
NRG also announced that it entered into an amendment of its Second Amended and Restated Credit Agreement to (i) increase the existing revolving commitments in an aggregate amount of $779 million and (ii) provide for a new tranche of revolving commitments in an aggregate amount of $258 million with a maturity date that is 30 months after the closing of the acquisition of Direct Energy, subject to certain potential extensions. The increase in the existing commitments and the commitments with respect to the new tranche will only become available upon the date of such closing. As a result, upon the closing date, the total revolving commitments available, subject to usage, under NRG’s revolving credit facility will equal $3.64 billion.
"This increase potentially reduces the need for other liquidity facilities associated with the proposed acquisition of Direct Energy," NRG said