Item 1.01 Entry into a Material Definitive Agreement.
On February 12, 2009, NRG Energy, Inc., or the Company, announced that Nuclear
Innovation North America, or NINA, an 88% percent owned subsidiary of the
Company, completed negotiations for the Engineering, Procurement and
Construction agreement, or the EPC Agreement, with Toshiba America Nuclear
Energy, Inc., or TANE, to build the South Texas Project, or STP, expansion.
Concurrent with the execution of the EPC Agreement, on February 24, 2009, NINA
entered into a $500 million credit agreement with TANE to finance long-lead
materials related to the development of STP Unit 3 and Unit 4. The facility will
bear interest at LIBOR plus 200 basis points, subject to a ratings grid for the
STP Unit 3 and Unit 4 Project. The facility will have an initial three-year term
with certain one-year extension rights subject to certain conditions being met.
NINA intends to terminate and repay any amounts outstanding related to its
revolving credit facility with The Royal Bank of Scotland PLC upon, or promptly
after entering into the facility.
A copy of the credit agreement is attached as Exhibit 10.1 to the Current Report
on Form 8-K. The description of the material terms of the credit agreement is
qualified in its entirety by reference to such exhibit.
Item 9.01 Financial Statements and Exhibits
Exhibit No. Document
10.1 Credit Agreement by and among Nuclear Innovation North America LLC,
Nuclear Innovation North America Investments LLC, NINA Texas 3 LLC and
NINA Texas 4 LLC, as Borrowers and Toshiba America Nuclear Energy
Corporation, as Administrative Agent and as Collateral Agent.
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