Mirant And RRI Energy Announce Arrangement Of GenOn Energy Debt And Schedule Special Meetings Of Stockholders To Vote On Merger

ATLANTA and HOUSTON, Sept. 20 /PRNewswire-FirstCall/ -- Mirant Corporation (NYSE: MIR) and RRI Energy, Inc. (NYSE: RRI) announced today that they have entered into agreements which  provide for the companies to borrow $1.925 billion upon the closing of their proposed merger to form GenOn Energy, Inc. (GenOn).  In addition, the companies have also entered into a revolving credit facility.  Completion of these financings is subject to the satisfaction of certain customary conditions.

Upon closing of the merger, the proceeds of the financings described above and cash on hand will be used to (1) discharge the RRI Energy senior secured notes due 2014 and the Mirant North America (MNA) senior unsecured notes due 2013, (2) defease the RRI Energy PEDFA 6.75% bonds due 2036, (3) repay the MNA senior secured term loan maturing in 2013 and (4) pay related fees and expenses, including accrued interest.

Upon their completion, the financings described above will, along with the availability of the revolving credit facility, satisfy the financing condition in the merger agreement.  

Mirant and RRI Energy have also announced that both companies will hold their respective special meetings of stockholders on October 25, 2010 for the purpose of voting upon proposals relating to the merger.  Stockholders who held shares of Mirant or RRI Energy common stock as of the close of business on September 13, 2010 will be entitled to vote at their respective special meeting.  

The merger remains subject to customary closing conditions, including receipt of Mirant and RRI Energy stockholder approval and the completion of review and clearance by the U.S. Department of Justice under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.  Mirant and RRI Energy expect to complete the merger by the end of the year.  

1 2 3 Next › Last »