NRG Yield Operating, an indirect subsidiary of New Jersey-based NRG Yield Inc., intends to commence an offering of $400 million of senior notes due 2024. The notes will be senior unsecured obligations of Yield Operating and guaranteed by NRG Yield.
Yield Operating says it intends to use the proceeds of the offering to fund, in whole or in part, renewable energy projects. Specifically, it plans to use the proceeds to help fund the previously announced $870 million purchase of the Alta Wind Energy Center (AWEC) in California from Terra-Gen Power.
NRG Yield, a yieldco subsidiary of NRG Energy, also recently launched a public offering of 10.5 million shares of its Class A common stock to help fund the AWEC buy. However, Yield Operating says its note offering is not conditioned upon the completion of the Alta deal.
