MINNEAPOLIS, Minn., Nov. 4, 2002 — NRG Energy Inc. decided not to make a $9.6 million interest payment due Nov. 1 on $240 million in eight percent senior unsecured notes.
NRG has until December 1 to make payment on the corporate level bond to avoid default.
In addition, on October 1, 2002, NRG did not make payments on two debt issues, a $13 million interest payment on $350 million in 7.75 percent senior unsecured notes due 2011 and a $21.6 million interest payment on $500 million in 8.625 percent senior unsecured notes due in 2031.
The 30-day grace period to make payment ended recently and NRG did not make the required payments. As a result, NRG is in default on these bonds.
As with all NRG debt issues, these are non-recourse to the parent company, Xcel Energy. NRG plans to address this payment in a broader restructuring plan and is working with bondholders to resolve this issue.
NRG Energy, a wholly owned and unregulated subsidiary of Xcel Energy, develops and operates power generating facilities. NRG’s operations include competitive energy production and cogeneration facilities, thermal energy production and energy resource recovery facilities.
Xcel Energy is a major U.S. electricity and natural gas company with regulated operations in 12 Western and Midwestern states. The company provides a comprehensive portfolio of energy-related products and services to 3.2 million electricity customers and 1.7 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the U.S. Company headquarters are located in Minneapolis.