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.