NRG Yield wraps up USD-495m IPO

Jul 23, 2013 - US utility NRG Energy Inc's (NYSE:NRG) unit NRG Yield Inc said Monday the underwriters of its initial public offering (IPO) had exercised in full their over-allotment option, boosting the gross proceeds from the sale to USD 495.2 million (EUR 375.2m).

NRG Yield, which owns and runs solar, thermal and conventional power plants in the US, unveiled its IPO earlier this month. As part of the placement it offered 19.6 million class A common shares at USD 22 apiece, targeting proceeds of USD 430.7 million. In addition, underwriters of the transaction have subscribed for up to 2.94 million of additional shares, thus increasing the total number of sold shares to 22.5 million. The stock is listed on the New York Stock Exchange (NYSE) under the "NYLD” ticker.

The net proceeds from the offering, estimated at about USD 468 million, will go to buy a portion of the equity interests in NRG Yield LLC, which holds the NRG Yield assets, from its parent. Some of the funds will be allocated for general corporate needs, the company explained.

BofA Merrill Lynch, Goldman, Sachs & Co (NYSE:GS) and Citigroup (NYSE:C) have been appointed joint book-runners of the IPO, while Barclays (LON:BARC), KeyBanc Capital Markets, Mitsubishi UFJ Securities, RBC Capital Markets, Credit Suisse (VTX:CSGN) and Deutsche Bank Securities served as co-managers.

(USD 1.0 = EUR 0.758)

Choose your newsletter by Renewables Now. Join for free!