Constellation Energy buying 44% stake in NRG nuclear power station for nearly $1.8 bln

Constellation Energy Corp. (CEG) said Thursday it agreed to pay $1.75 billion for 44% ownership of the South Texas Project Electric Generating Station near Houston. The seller is NRG Energy Inc. (NRG). Constellation said the 2.645 megawatt, duel-nuclear power station has the potential to run for at least 46 more years. "We look forward to working with the South Texas Project's other owners to continue bringing clean, reliable electricity to this growing region for decades to come," said Constellation Energy CEO Joe Dominguez. BofA Securities is exclusive financial adviser to Constellation on the deal, with Barclays Capital and Morgan Stanley advising NRG. For its part, NRG said it expects the sale to be leverage-neutral with net cash proceeds to be used primarily for share repurchases, as well as $500 million for deleveraging. NRG stock is up 2% in pre-market trades Thursday, while Constellation Energy rose 0.7% in aftermarket trades late Wednesday.

-Steve Gelsi

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06-01-23 0712ET

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