NRG Energy yields renewable, generation IPO

NRG Energy (NYSE:NRG) said June 7 that its wholly-owned subsidiary, NRG Yield, has filed an S-1 registration statement with the Securities and Exchange Commission (SEC) in anticipation of a proposed initial public offering (IPO) of the Class A common stock.

NRG Yield was formed by NRG Energy to own and operate a diversified portfolio of long-term contracted renewable energy, conventional generation facilities and thermal infrastructure assets in the United States. Following the offering, NRG is expected to retain a majority voting interest in NRG Yield and a corresponding economic interest in its subsidiaries.

The number of shares to be offered and the price range for the offering have not yet been determined.

BofA Merrill Lynch, Goldman, Sachs & Co., and Citigroup will serve as joint book-running managers in the proposed offering.

The registration statement on Form S-1 filed with the Commission has not yet become effective and the shares to be registered may not be sold nor may offers to buy be accepted prior to the time when the registration statement becomes effective.

The proposed offering will be made only by means of a prospectus.

The NRG Yield announcement comes several months after NRG Energy completed its merger with another independent power producer, GenOn Energy. Since ending its pursuit of new nuclear reactors at the South Texas Project a couple of years ago, NRG has been increasingly active on the renewable energy front.

According to the company’s website, NRG Energy owned about 265 MW of solar generation as of mid-December 2012. NRG has been bringing online many new major solar plants in 2013, including the California Valley Solar Ranch and the Alpine solar project in California.

These plants have long-term power contracts. It was not immediately clear how much of NRG Energy’s existing renewable or conventional fleet might be assigned to the new company.

NRG Energy did announce that Board of Directors member John Chlebowski will be joining the Board of Directors of NRG Yield effective immediately prior to the closing of the IPO and has agreed to resign as a director of NRG on such date. “Mr. Chlebowski’s decision to resign was not as a result of any disagreement with NRG, its Board of Directors or its management,” NRG Energy said in its SEC filing.

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About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.