BULLETIN: NRG Energy's Share Repurchase Program Does Not Affect Rating
- ID: 1787915
- August 2006
- Standard & Poors
NEW YORK (Standard & Poor's) Aug. 1, 2006--Standard & Poor's Rating Services said today that NRG Energy Inc.'s (B+/Stable/B-2) announced plan to create a bankruptcy-remote special purpose entity (SPE) as a vehicle for repurchasing common stock does not affect the rating on the company. The share repurchase program's novel structure will initially be funded with cash and should shield it from having to issue debt to support the repurchases. The SPE will repurchase shares using cash capital infusions from NRG and a subsidiary of Credit Suisse (CS). These contributions will be made in a two-to-one ratio of CS funds to NRG funds. NRG's contribution will be $166 million, a portion of which will fund interest and dividends payable to CS...
Companies mentioned in this report are: NRG Energy Inc.
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