NRG Yield Inc. has closed the previously announced public offering of Class A common stock, the proceeds from which the company plans to use to help buy the 947 MW Alta Wind Energy Center (AWEC) in California.
NRG Yield, a yieldco subsidiary of NRG Energy, closed the offering of 10.5 million Class A common stock shares at a price to the public of $54.00 each. Furthermore, the underwriters exercised in full their option to purchase an additional 1.575 million shares at the offering price less the underwriting discount. As a result, the total offering size was 12.075 shares of Class A common stock.
NRG says it intends to use all of the net proceeds of the offering to fund the $870 million acquisition of the AWEC from Terra-Gen Power. However, the offering is not conditioned upon the completion of the AWEC acquisition, and if that deal is not closed, NRG will use the net proceeds from the offering for general corporate purposes, including to fund other acquisition opportunities.
NRG Yield Operating, an indirect subsidiary of NRG Yield, also recently announced plans to commence an offering of $400 million of senior notes due 2024. NRG said it intends to use those proceeds to help fund the AWEC acquisition as well.
BofA Merrill Lynch, Citigroup, Morgan Stanley, Barclays, and Goldman, Sachs & Co. acted as joint book runners for the offering. Credit Suisse, Deutsche Bank Securities, KeyBanc Capital Markets, MUFG and RBC Capital Markets acted as co-managers.