GenOn Completes $520 Million PJM Gas Plant Portfolio Financing

HOUSTON--()--GenOn Holdings, Inc. (GenOn) has closed on a $520 million 7-year term loan B secured by a portion of the GenOn Holdings portfolio – called Heritage Power, LLC (Heritage). The Heritage plants include:

• Blossburg • New Castle • Shawville
• Brunot Island • Niles • Titus
• Gilbert • Orrtanna • Tolna
• Hamilton • Portland • Warren
• Hunterstown • Sayreville
• Mountain • Shawnee

In addition to the term loan B, the financing included a total of nearly $100 million in revolver and letter of credit facilities to support Heritage. Proceeds from the Heritage financing was used to repay in full the existing $400 million in senior secured second-lien notes and to refinance GenOn’s revolving credit facility.

With the closing of the Heritage financing, the Company has executed a significant first step toward implementing a more efficient capital structure following our financial restructuring late last year,” said Darren Olagues, GenOn Chief Financial Officer. “The new Heritage financing raises incremental capital secured by a smaller portfolio of assets as Heritage investors recognized the attractiveness of the contracted cash flow profile of the portfolio’s assets as well as its low-cost operations.”

GenOn will continue to operate the Heritage plants under a Management Services Agreement, an Operations and Maintenance Agreement, and “ringfencing” rules.

ABOUT GENON

GenOn is one of the largest independent power producers in the nation delivering electricity to wholesale customers primarily in the Northeast and MidAtlantic. The company’s fleet of power plants has the ability to provide power to nearly 10 million homes. GenOn is committed to delivering safe and reliable power to the communities we serve. For more information about GenOn, its management team and generating assets, visit www.genon.com.

Certain of the statements included in this press release constitute “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, they include statements relating to future actions and strategies of GenOn and its subsidiaries. These forward-looking statements are based on current expectations and projections about future events. Readers are cautioned that forward-looking statements are not guarantees of future operating and financial performance or results and involve substantial risks and uncertainties that cannot be predicted or quantified, and, consequently, the actual performance of GenOn and its subsidiaries may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include factors described in new GenOn’s and GenOn’s reports previously filed with the Securities and Exchange Commission and posted to new GenOn’s website.

Contacts

Andy Smith, andrew.smith@genon.com

Release Summary

GenOn Completes $520 Million PJM Gas Plant Portfolio Financing

Contacts

Andy Smith, andrew.smith@genon.com