NRG · 10-Q · 2026Q2 · Full report

Interest Rate and Refinancing Exposure

NRG ENERGY, INC. · 2026-08-04 · Importance 29 · Surprise 24 · Matches filing data

NRG entered into interest-rate derivatives to mitigate floating-rate exposure on its Term Loan B, including $[amount not provided] of interest-rate swaps extending through 2029. The company issued fixed-rate notes carrying coupons of 5.875%, 6.125% and 4.955%, with maturities from 2031 through 2036, while acquisition-related term loans bear interest at SOFR plus applicable margins. In February 2026, NRG entered into treasury locks with a total notional amount of $[amount not provided], which were fully terminated in March 2026.

Key facts

• Interest expense increased by $284 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily attributable to the LSP acquisition, borrowing to finance the acquisition, assumption of Lightning debt, and refinancing activity source
• Interest expense increased by $162 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily attributable to the LSP acquisition, borrowing to finance the acquisition, assumption of Lightning debt, and refinancing activity source
• As of June 30, 2026, the Company had $[amount] million of interest rate swaps extending through 2029 to mitigate floating rate of the Term Loan B (specific $ redacted in excerpt). source
• Interest margins on Lightning facilities as of June 30, 2026: Lightning Term Loan margin 2.000% and Lightning Revolving Facility margin 1.750% due to leverage-based margin step-downs. source
• In February 2026, the Company entered into treasury locks with a total notional amount of $[amount] million which were fully terminated in March 2026 (specific $ redacted). source
• NRG may enter into interest rate derivatives to mitigate interest rate risk associated with the issuance of the Company’s debt. source

Impact estimates