NRG Energy sells 44% stake in South Texas Project to Constellation for $1.75B

NRG ENERGY, INC.

Equity purchase price of $1.75B, subject to customary adjustments; implies 11.7x EV/EBITDA and 17.5x Free Cash Flow.
Transaction expected to close by end of 2023, subject to NRC, HSR, and Texas PUCT approvals.
NRG Board authorized $650M in share repurchases after closing, bringing total authorized to $1B.
Sale exceeds prior 2023 asset sale target of $500M; net proceeds after $500M deleveraging used for buybacks.
NRG reaffirms target of 2.50x-2.75x net debt to adjusted EBITDA by late 2025/2026.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

NRG ENERGY, INC. entered into Purchase Agreement with Constellation Energy Generation, LLC valued at $1,750,000,000 (effective 2023-05-31).

Action: entry
Agreement: equity purchase
Counterparty: Constellation Energy Generation, LLC
Value: $1,750,000,000
Effective: 2023-05-31

Exact text from the filing

On May 31, 2023 NRG Energy, Inc.’s (“NRG”) wholly owned subsidiaries Texas Genco GP, LLC and Texas Genco LP, LLC (the “NRG Sellers”) entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Constellation Energy Generation, LLC (“Constellation”) a wholly owned subsidiary of Constellation Energy Corporation, pursuant to which the NRG Sellers agreed to sell to Constellation one hundred percent (100%) of the outstanding general and limited partnership interests in NRG South Texas, LP (the “Transaction”).

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NRG ENERGY, INC. filing history →

Source: SEC EDGAR

accession 0001104659-23-067085

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