Research Update: NRG Energy Inc.?s Rating Affirmed On Proposed Refinancing Of APX Group Holdings (aka Vivint)?s Debt; Outlook Positive

NRG Energy Inc. (NRG) is proposing to refinance some of the debt at APX Group Holdings (aka Vivint) with an add-on to its secured term loan B due 2031. We anticipate the transaction will be neutral for leverage. We also expect that NRG will eventually refinance all the debt currently outstanding at Vivint. As a result, S&P Global Ratings affirmed its 'BB' rating on NRG's issuer credit rating, its 'BBB-' issue-level rating on its senior secured debt, 'BB' rating on its senior unsecured debt, and 'B' rating on its preferred stock. The recovery rating on the senior secured debt remains '1' (rounded estimate: 95%), reflecting our expectation of very high recovery. Our recovery rating on the senior unsecured remains '4'

...- NRG Energy Inc. (NRG) is proposing to refinance some of the debt at APX Group Holdings (aka Vivint) with an add-on to its secured term loan B due 2031. We anticipate the transaction will be neutral for leverage. We also expect that NRG will eventually refinance all the debt currently outstanding at Vivint. - As a result, S&P Global Ratings affirmed its '##' rating on NRG's issuer credit rating, its '###-' issue-level rating on its senior secured debt, '##' rating on its senior unsecured debt, and 'B' rating on its preferred stock. - The recovery rating on the senior secured debt remains '1' (rounded estimate: 95%), reflecting our expectation of very high recovery. Our recovery rating on the senior unsecured remains '4' (rounded estimate: 35%). - The positive outlook reflects our expectation that NRG will continue to delever, with leverage reaching 3.0x-3.25x in 2025, while demonstrating a successful execution of the integrated strategy that results in improved key retail metrics....

Research Update