425
Filed by NRG Energy, Inc. pursuant to
Rule 425 of the Securities Act of 1933 and
deemed filed pursuant to Rule 14a-12 of the
Securities Exchange Act of 1934
Subject Company: NRG Energy, Inc.
Commission File No.: 001-15891
On March 27, 2009, David Crane, President and Chief Executive Officer of NRG Energy, Inc.
(NRG) and Howard Cosgrove, Chairman of the NRG Board, sent the following letter to John Rowe,
Chairman and Chief Executive Officer of Exelon Corporation.
[NRG ENERGY, INC. LETTERHEAD]
March 27, 2009
John W. Rowe
Exelon Corporation
P.O. Box 805398
Chicago, IL 60680-5398
Dear John:
We are in receipt of your March 26, 2009, letter. We believe your interpretation of our senior
credit agreement and indentures is imprudent given the potential consequences of an evenly split
NRG Board with respect to our debt. Nor do you address the severe harm that Exelon could cause to
NRG and its shareholders in the future where NRGs Continuing Directors hold a one vote majority
and an inadvertent change of control could occur as the result of the resignation of even one
Continuing Director, for whatever reason. However, as it is clear from the direction of your letter
that you do not intend to withdraw your Board expansion proposal, we will consider the alternatives
within our authority to mitigate to the extent possible the risk to NRG shareholders of the
acceleration of approximately $8 billion of debt.
As we have stated many times, NRG remains entirely focused on protecting shareholder value and
creating additional shareholder value. One important way in which we seek to protect shareholder
value is by avoiding the substantial economic waste that would be associated with refinancing all
or a major portion of our long term debt in this extraordinarily challenging capital market
environment. In terms of creating shareholder value, we have been able to take advantage of the
opportunity-rich environment to do value-enhancing transactions with eSolar and Reliant Energy and
we have achieved further advances with our STP 3 and 4 nuclear development project.
We would be very pleased to sit down with you to explain the value created by NRG over recent weeks
and to hear about what Exelon has been doing over that time period to create value. We welcome your
recent decision to follow our lead on nuclear
development through your selection of ABWR technology and believe we could be helpful to you in
avoiding future missteps in this regard. As such, we would encourage you to put forward a new offer
that constitutes a real value proposition to NRG shareholders, in contrast to your present offer
which attempts to secure a severely unfair proportion of the benefit of the proposed combination
for the current shareholders of Exelon.
Sincerely,
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David Crane
President and Chief Executive Officer
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Howard Cosgrove
Chairman of the Board |
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cc: |
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Board of Directors of Exelon Corporation
c/o Corporate Secretary, Exelon Corporation |
Important Information
This communication does not constitute an offer to sell or the solicitation of an offer to buy any
securities or a solicitation of proxy of any stockholder of NRG Energy, Inc. (NRG). NRG plans to
file with the Securities and Exchange Commission (the SEC) and furnish to its stockholders a
proxy statement and white proxy card in connection with its 2009 Annual Meeting of Stockholders
(the 2009 Annual Meeting). INVESTORS AND STOCKHOLDERS OF NRG ARE URGED TO READ THE PROXY
STATEMENT FOR THE 2009 ANNUAL MEETING IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE BECAUSE IT WILL
CONTAIN IMPORTANT INFORMATION.
In response to the exchange offer proposed by Exelon Corporation referred to in this news release,
NRG has filed with the SEC a Solicitation/Recommendation Statement on Schedule 14D-9. STOCKHOLDERS
OF NRG ARE ADVISED TO READ NRGS SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9 IN ITS
ENTIRETY BECAUSE IT CONTAINS IMPORTANT INFORMATION.
Investors and stockholders will be able to obtain free copies of NRGs proxy statement (when it
becomes available), the Solicitation/Recommendation Statement on Schedule 14D-9, any other
documents filed by NRG in connection with the exchange offer by Exelon Corporation, and other
documents filed with the SEC by NRG at the SECs website at www.sec.gov. Free copies of any such
documents can also be obtained by directing a request to Investor Relations Department, NRG Energy,
Inc., 211 Carnegie Center, Princeton, New Jersey 08540.
NRG and its directors and executive officers will be deemed to be participants in the solicitation
of proxies in connection with its 2009 Annual Meeting. Information regarding NRGs directors and
executive officers is available in its Annual Report on Form 10-K for the year ended December 31,
2008, which was filed with the SEC on February 12, 2009, and its proxy statement for its 2008
Annual Meeting of Stockholders, which was filed with the SEC on April 2, 2008. Detailed information
regarding the names, affiliations and interests of individuals who will participate in the
solicitation of proxies of NRGs stockholders will also be available in NRGs proxy statement for
the 2009 Annual Meeting.
Forward-Looking Statements
This communication contains forward-looking statements that may state NRGs or its managements
intentions, hopes, beliefs, expectations or predictions for the future. Such forward-looking
statements are subject to certain risks, uncertainties and assumptions, and typically can be
identified by the use of words such as will, expect, estimate, anticipate, forecast,
plan, believe and similar terms. Although NRG believes that its expectations are reasonable, it
can give no assurance that these expectations will prove to have been correct, and actual results
may vary materially. Factors that could cause actual results to differ materially from those
contemplated above include, among others, risks and uncertainties related to the capital markets
generally.
The foregoing review of factors that could cause NRGs actual results to differ materially
from those contemplated in the forward-looking statements included herein should be considered in
connection with information regarding risks and uncertainties that may affect NRGs future results
included in NRGs filings with the SEC at www.sec.gov. Statements made in connection with
the exchange offer are not subject to the safe harbor protections provided to forward-looking
statements under the Private Securities Litigation Reform Act of 1995.