NRG Yield seeks USD 567m in proceeds from share issue

Jul 24, 2014 - US power plants operator NRG Yield Inc (NYSE:NYLD) expects to raise some USD 567 million (EUR 421m) from its planned common stock sale, excluding over-allotments.

The company said in a press release yesterday it had priced its public offering of 10.5 million shares of its class A common stock at USD 54.00 apiece. It has granted an over-allotment option that allows underwriters to buy a further 1.575 million common shares at the same price.

The private placement proceeds will be used to buy newly issued class A units of NRG Yield LLC, a subsidiary of NRG Yield Inc. The unit will in turn combine the amount raised from the share sale with available cash and the proceeds from a recent debt securities issue to finance the pending USD-870-million acquisition of the operational 947-MW Alta Wind Energy Centre in California.

Alta Wind, which is touted as the largest wind facility in North America, is owned by US green energy firm Terra-Gen Power LLC, an affiliate of private equity firms Global Infrastructure Partners and ArcLight Capital Partners LLC. The acquisition of the wind farm complex will expand the combined wind portfolio owned by NRG Yield and its parent NRG Energy Inc (NYSE:NRG) to 2,839 MW.

(USD 1.0 = EUR 0.742)

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