The Investor
01 Oct 2025, 20:35
NRG Energy, Inc. disclosed in its October 1, 2025 Form 8-K that its subsidiary, **NRG Cedar Bayou 5 LLC**, entered into a **$561.9 million credit agreement** with Wilmington Trust (as agent) and the Public Utility Commission of Texas (as lender). The financing will cover about **60% of eligible costs** for a planned **721 MW natural gas-fired combined-cycle power plant** in Chambers County, Texas, within ERCOT.
The loan carries **3% interest**, payable quarterly, but interest will be capitalized (paid in kind) until the project reaches commercial operation. The facility matures on **September 26, 2045**. NRG also signed an equity contribution agreement and guaranty, backing the borrower’s obligations. The deal includes covenants limiting additional debt and asset transfers, as well as mandatory prepayment triggers. A key default condition is failure to achieve commercial operation by **December 1, 2028**.
The loan carries **3% interest**, payable quarterly, but interest will be capitalized (paid in kind) until the project reaches commercial operation. The facility matures on **September 26, 2045**. NRG also signed an equity contribution agreement and guaranty, backing the borrower’s obligations. The deal includes covenants limiting additional debt and asset transfers, as well as mandatory prepayment triggers. A key default condition is failure to achieve commercial operation by **December 1, 2028**.
