The Deal: NRG Yield to Price IPO
NEW YORK (The Deal) -- NRG Yield Inc., the spinoff from Princeton, N.J., power generator NRG Energy Inc.
The company, whose ticker symbol is expected to be NYLD, is targeted to increase its dividend by 10% to 15% over next five years through NRG Energy asset dropdowns. Compared with the average master limited partnership, NRG Yield has a higher yield, more growth and safer cash flows, with an implied enterprise value-to-Ebitda multiple of 10 versus 8 for NRG.
NRG already is adding to list of assets to capture multiple arbitrage by acquiring a 26-megawatt Guam solar project from Quantum Utility Generation LLC, TPH said. NRG Yield expects to sell up to 19.6 million shares, which could bring in as much as $411 million. NRG announced the IPO in June after filing confidentially with the Securities and Exchange Commission in February. Bank of America Merrill Lynch, Goldman, Sachs & Co.
Written by Claire Poole