The Company intends to use all of the net proceeds of the offering to acquire newly issued Class C units of NRG Yield LLC (Yield LLC). Yield LLC intends to use the net proceeds of the offering, together with cash on hand: (i) to fund the Companys $285 million acquisition of a 25% equity interest in Desert Sunlight; and (ii) if consummated, to repay a portion of the $490 million of outstanding project debt associated with the Companys Alta X and Alta XI wind facilities, with an interest rate of LIBOR plus 2% and a maturity date of 2021, in connection with the proposed tax equity financing of such assets.
Any funds remaining are expected to be used, or in the event that either the Desert Sunlight acquisition or the Alta X and Alta XI tax equity financing are not consummated for any reason such funds are expected to be used, for repayment of other indebtedness, including under the Companys revolving credit facility, and for general corporate purposes, including future acquisitions of additional assets from NRG or third parties.
Goldman, Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC will act as joint book runners for the offering. Barclays Capital Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc. and Mitsubishi UFJ Securities (USA), Inc. will act as co-managers for the offering.
A shelf registration statement (including a prospectus) relating to the offering has been filed with the SEC and has become effective. Before you invest, you should read the prospectus in that registration statement and the applicable prospectus supplement and other documents the Company has filed or will file with the SEC for more complete information about the Company and the offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov
