Reliant Resources Prepays $917 Million of Debt

January 01, 2004 by Jeff Shepard

Reliant Resources Inc. (Houston, TX) announced that it has prepaid a total of $917 million of debt, cancelled a $300 million senior priority credit facility, which has never been used, and obtained an amendment to its bank credit facilities that will give the company greater flexibility to purchase selected generating assets to support its retail business in Texas.

Approximately $784 million, of the $917 million, was used for the permanent prepayment of the company's bank term loans, and $133 million was used to pay down its revolving credit facility. In addition to the bank debt prepayments, Reliant cancelled its $300 million senior priority credit facility that would have matured in December 2004 in order to eliminate the associated costs.