NRG Yield to issue $350 million in bonds

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Fresh on the heels of last week’s news that NRG Yield has bid to acquire 2.1 GW of solar and wind projects from SunEdison, the renewable energy and gas asset holding subsidiary of NRG is now seeking to raise substantial cash.

This morning NRG Yield announced plans to offer $350 million in unsecured bonds due 2026. The notes will be guaranteed by NRG Yield and subsidiaries.

A brief press statement indicates that NRG Yield intends to use the offerings to repay outstanding cash borrowings under its revolving credit facility, with the remainder to go to general corporate purposes, “including the funding of acquisitions and investments”.

NRG Yield declined to respond to a pv magazine inquiry about whether this means the 2.1 GW of SunEdison projects.

Due to SunEdison’s bankruptcy, last week’s agreement between the two companies will set the wheels in motion to create an auction. Under the agreement, NRG Yield will serve as the lead bidder and its bids will set a floor price for any other bids.

At the price set in the agreement NRG Yield would need to pay $129 million up-front for the whole 2.1 GW, and a total of up to $188 million – under $0.10 per watt.

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