NRG Energy is driving by with a $1 billion offering of 10.5-year (non-call five) senior notes. Morgan Stanley, Barclays, J.P. Morgan, BNP Paribas, Citi, Commerzbank, Credit Suisse, Deutsche Bank, ING, MUFG, Natixis, and SMBC are joint bookrunners. Pricing will follow a 10:30 a.m. EDT investor call.

Proceeds will be used to finance the full redemption of its $817.5 million of 8.25% notes due 2020, and the partial redemption of its $888 million of 7.875% notes due 2021. The 2020s are currently callable at 104.125, but the call price steps down on Sept. 1 to 102.75. The 2021s hit their first call of 103.938 in May.

Current ratings are BB–/B1.

The new bonds will extend the curve beyond the company’s 6.25% notes due 2024 and the 7.25% notes due 2026. Those bonds closed last night at 101.25 yielding 6%, and 105.4 yielding 6.5% respectively, according to S&P Global Market Intelligence.

The company was seen last month issuing a $1.9 billion B term loan. The seven-year paper pays L+275, with a 75 bps floor, and the loan allocated at 99.5. NRG’s last foray to the bond market was in May with the aforementioned 2026 notes.

NRG Energy is an integrated competitive power company. The company trades on the NYSE under the ticker NRG and has a market cap of roughly $4.9 billion. — Luke Millar

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