v3.26.1
Long-term Debt and Finance Leases
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Long-term Debt and Finance Leases Long-term Debt and Finance Leases
Long-term debt and finance leases consisted of the following:
(In millions, except rates)June 30, 2026December 31, 2025Interest rate %
Recourse debt:
Senior Notes, due 2028$821 $821 5.750
Senior Notes, due 2029733 733 5.250
Senior Notes, due 2029500 500 3.375
Senior Notes, due 2029798 798 5.750
Senior Notes, due 20311,030 1,030 3.625
Senior Notes, due 2032480 480 3.875
Senior Notes, due 2033925 925 6.000
Senior Notes, due 2034950 950 6.250
Senior Notes, due 20341,250 1,250 5.750
Senior Notes, due 20341,050 — 5.875
Senior Notes, due 20362,400 2,400 6.000
Senior Notes, due 20361,050 — 6.125
Senior Secured First Lien Notes, due 2027900 900 2.450
Senior Secured First Lien Notes, due 2029500 500 4.450
Senior Secured First Lien Notes, due 2030625 625 4.734
Senior Secured First Lien Notes, due 2031500 — 4.955
Senior Secured First Lien Notes, due 2033740 740 7.000
Senior Secured First Lien Notes, due 2035625 625 5.407
Revolving Credit Facility1,449 — 
SOFR + 1.720
Term Loan B, due 20312,287 2,299 
SOFR + 1.750
Term Loan B, due 2033898 — 
SOFR + 1.750
Tax-exempt bonds466 466 
4.000 - 4.750
T.H. Wharton TEF loan, due 2045216 189 3.000
Cedar Bayou 5 TEF loan, due 2045334 255 3.000
Greens Bayou 6 TEF loan, due 2045146 90 3.000
Subtotal recourse debt21,673 16,576 
Non-recourse debt:
Lightning Term Loan, due 2031
1,719 — 
SOFR + 2.000
Subtotal all Lightning non-recourse debt1,719 — 
Subtotal long-term debt (including current maturities)23,392 16,576 
Finance leases45 24 various
Subtotal long-term debt and finance leases (including current maturities)23,437 16,600 
Less current maturities(1,512)(31)
Less debt issuance costs(177)(146)
Discounts, net of premiums(4)(11)
Total long-term debt and finance leases$21,744 $16,412 
Recourse Debt
Term Loan B Incurrence
On April 28, 2026, the Company and APX Group LLC, as borrowers, and certain of the Company’s subsidiaries, as guarantors, entered into the Sixteenth Amendment to the Second Amended and Restated Credit Agreement (the “Sixteenth Amendment”), dated of June 30, 2016, with, among others, Citicorp North America, Inc., as administrative agent and as collateral agent, and certain financial institutions, as lenders (as amended, restated, supplemented and/or otherwise modified from time to time, the “Credit Agreement”), in order to (i) establish new term loans in aggregate principal amount of
$900 million (the “Incremental Term Loans”), and (ii) make certain modifications to the Credit Agreement in connection therewith. The Incremental Term Loans constitute a new and separate class of term loans under the Credit Agreement.
Issuance of Unsecured Notes and Secured Notes
On April 28, 2026, the Company issued $2.1 billion in aggregate principal amount of senior unsecured notes consisting of (i) $1.05 billion aggregate principal amount of 5.875% senior notes due 2034 (the “New 2034 Notes”) and (ii) $1.05 billion aggregate principal amount of 6.125% senior notes due 2036 (the “New 2036 Notes” and, together with the New 2034 Notes, the “New Unsecured Notes”). The New Unsecured Notes are senior unsecured obligations of the Company and are guaranteed by its wholly-owned U.S. subsidiaries that guarantee the loans under the Senior Credit Facility. The New 2034 Notes will mature on May 15, 2034. Interest on the New 2034 Notes will be paid semi-annually on May 15 and November 15 of each year commencing on November 15, 2026. The New 2036 Notes will mature on May 15, 2036. Interest on the New 2036 Notes will be paid semi-annually commencing on November 15, 2026.
On April 28, 2026, the Company also issued $500 million aggregate principal amount of 4.955% senior secured first lien notes due 2031 (the “New 2031 Notes”). The New 2031 Notes are senior secured obligations of the Company and are guaranteed by its wholly-owned U.S. subsidiaries that guarantee the loans under the Senior Credit Facility. The New 2031 Notes are secured by a first priority security interest in the same collateral that is pledged for the benefit of the lenders under the Senior Credit Facility and existing senior secured notes, which collateral consists of a substantial portion of the property and assets owned by the Company and the guarantors. The New 2031 Notes will mature on April 30, 2031. Interest on the New 2031 Notes will be paid semi-annually on April 30 and October 30 of each year commencing on October 30, 2026.
The Company used the net proceeds from the New Unsecured Notes, together with the net proceeds from the New 2031 Notes, and the Incremental Term Loans, to pay the tender price of the Tender Offer (as defined below), to pay estimated transaction fees, expenses and premiums, and the remainder to repay a portion of the outstanding borrowings under the Company’s Revolving Credit Facility.
Bilateral Letter of Credit Facilities
In January and February 2026, the Company and certain of its subsidiaries, as guarantors, entered into amendments to its existing bilateral letter of credit facilities to increase the size of its bilateral credit facilities by $410 million and $90 million, respectively, to provide additional liquidity. As of June 30, 2026, $784 million was issued under these facilities.
Credit Default Swap Facility
On July 21, 2026, the Company entered into a credit agreement, with commitments from lenders not to exceed $250 million, for the issuance of letters of credit to support normal business operations. As of July 31, 2026, there were no letters of credit issued under this facility.
Texas Development Projects
The T.H. Wharton TEF loan, due 2045, has been fully disbursed as of June 30, 2026. As of July 31, 2026, $344 million and $167 million of disbursements have occurred for the Cedar Bayou 5 TEF loan, due 2045 and Greens Bayou 6 TEF loan, due 2045, respectively (together with the T.H. Wharton TEF loan, due 2045, collectively the “TEF Loans”).
Receivables Securitization Facilities
On June 18, 2026, NRG Receivables, an indirect wholly-owned subsidiary of the Company, amended its existing Receivables Facility to, among other things, extend the scheduled termination date to June 17, 2027. As of June 30, 2026, there were $991 million in letters of credit issued under the Receivables Facility.
2032 Senior Notes
The Sustainability Performance Target was satisfied with respect to the year ended December 31, 2025. For additional information regarding the 2032 Senior Notes’ early redemption feature, see Note 12, Long-term Debt and Finance Leases, to the Company’s 2025 Form 10-K.
Non-recourse Debt
The following are descriptions of certain indebtedness of NRG’s subsidiaries, which are non-recourse debt to NRG.
Acquired LS Power Debt
On January 30, 2026 (the “Acquisition Closing Date”), in connection with the acquisition of the LSP Portfolio from LS Power, Lightning, an indirect, wholly-owned subsidiary of NRG as of such date, retained its 7.250% Senior Secured Notes due 2032, term loan and revolving loan facility. As of June 30, 2026, the 7.250% Senior Secured Notes due 2032 are no longer outstanding as discussed below.
Lightning Notes
On the Acquisition Closing Date, Lightning remained the issuer of $1.5 billion aggregate principal amount of 7.250% Senior Secured Notes due 2032 (the “Lightning 2032 Notes”) issued pursuant to an indenture dated August 16, 2024 (the “Lightning Indenture”), by and among Lightning, Lightning’s subsidiaries that are guarantors from time to time party thereto, and U.S. Bank Trust Company, National Association, in its capacities as trustee and collateral trustee (the “Lightning Notes Trustee”).
Subject to certain qualifications and exceptions, the Lightning Indenture, among other things, limits Lightning’s ability and the ability of Lightning’s restricted subsidiaries to incur or guarantee additional indebtedness; create or incur liens; make certain restricted payments; and consolidate, merge or transfer all or substantially all of Lightning’s and its subsidiaries’ assets on a consolidated basis.
Lightning Tender Offer and Redemption
On April 14, 2026, Lightning commenced a cash tender offer to purchase any and all of the Lightning 2032 Notes (the “Tender Offer”). In conjunction with the Tender Offer, Lightning solicited consents (the “Consent Solicitation”) to adopt certain proposed amendments to the Lightning Indenture to (1) eliminate substantially all of the restrictive covenants and certain affirmative covenants and events of default and related provisions therein and (2) release all of the guarantees of and the collateral securing the Lightning 2032 Notes.
In connection with the Tender Offer, $1.495 billion aggregate principal amount of Lightning 2032 Notes (or 99.670%) were tendered and repurchased by Lightning for an aggregate purchase price of $1.6 billion (plus accrued and unpaid interest to, but excluding, the applicable repurchase date). In addition, pursuant to the Consent Solicitation, Lightning obtained consents from the requisite holders of the Lightning 2032 Notes and, on April 29, 2026, Lightning, the Lightning Notes Trustee, and the relevant guarantors, entered into a supplemental indenture to the Lightning Indenture to effectuate the amendments described above.
Further, pursuant to the terms of the Lightning Indenture, on April 28, 2026, Lightning issued a notice of redemption to redeem (the “Redemption”) the remaining $5 million aggregate principal amount of the Lightning 2032 Notes at a redemption price of 101.375% (plus accrued and unpaid interest to, but excluding, the redemption date). The redemption of such notes occurred on May 14, 2026. In connection with the Tender Offer and Redemption, a $9 million loss on debt extinguishment was recorded.
Lightning Credit Facility
On the Acquisition Closing Date, Lightning remained party to a credit agreement (the “Lightning Credit Agreement”) with Morgan Stanley Senior Funding, Inc. as administrative agent and collateral agent and various lenders and issuing banks from time to time party thereto. The Lightning Credit Agreement consists of a term loan in an original aggregate principal amount of $1.75 billion (the “Lightning Term Loan”) and revolving loan facility of $600 million (the “Lightning Revolving Facility”). The maturity date of the Lightning Term Loan and the Lightning Revolving Facility is August 16, 2031, and August 16, 2029, respectively. Interest on the Lightning Term Loan and revolving credit borrowings under the Lightning Revolving Facility accrues at a rate per annum equal to the SOFR rate plus a margin of 2.250%, and 2.000%, respectively, subject to leverage-based margin step-downs. As of June 30, 2026, the margin on the Lightning Term Loan and revolving credit borrowings under the Lightning Revolving Facility is 2.000%, and 1.750%, respectively, due to leveraged-based margin step-downs. As of June 30, 2026, there were no outstanding borrowings and there were $82 million in letters of credit issued under the Lightning Revolving Facility.