NRG Energy, Inc. has announced a cash tender offer and consent solicitation for any and all of APX Group, Inc.’s outstanding 6.75% senior secured notes due 2027. The notes have a principal amount outstanding of $600 million and a U.S. Treasury reference security of 2.000% due February 15, 2025.
The tender offer is scheduled to expire at 5:00 p.m., New York City time, on November 13, 2024, with an early tender deadline of October 28, 2024. Holders of notes who validly tendered their notes at or prior to the early tender deadline will be eligible to receive the total consideration for such notes, which includes an early tender payment of $50.00 per $1,000 principal amount of notes.
In addition to the total consideration, APX will pay accrued and unpaid interest on the principal amount of notes accepted for purchase from the most recent interest payment date on the notes to, but not including, the applicable settlement date.
The total consideration payable by APX for the notes will be a price per $1,000 principal amount intended to result in a yield to maturity equal to the bid side yield to maturity of the U.S. Treasury reference security specified in the table above, plus the fixed spread specified in the table above.
Assuming receipt of the requisite consents, APX, the guarantors party thereto, the trustee, and collateral agent expect to execute and deliver a supplemental indenture to the indenture governing the notes, with the proposed amendments becoming operative upon the acceptance for purchase of the notes satisfying the requisite consents in the tender offer.
The press release emphasizes that the tender offer is not conditioned upon the tender of any minimum principal amount of notes and that APX has the right to not accept any tenders of notes for any reason and to amend or terminate the tender offer at any time.
The press release does not constitute an offer to purchase or the solicitation of an offer to sell any securities, and the tender offer is being made solely by means of the offer to purchase and consent solicitation statement.
NRG Energy, Inc. is a leading energy and home services company operating in the United States and Canada, delivering innovative solutions and advocating for competitive energy markets and customer choice. The market has reacted to these announcements by moving the company's shares -0.4% to a price of $89.7. If you want to know more, read the company's complete 8-K report here.
