UPDATE 1-Reliant Energy terminates $300 mln debt facility
SAN FRANCISCO, Dec 5 (Reuters) - Reliant Energy Inc (RRI.N) said on Friday it had terminated a $300 million working capital facility with Merrill Lynch as it shapes up its balance sheet and looks at a possible sale of assets or the entire company.
The independent power producer said the termination would "address any possible issues that might be raised regarding compliance" with a minimum-earnings covenant attached to the facility. A waiver of that covenant was expiring on Friday.
Last week, Reliant said it would not proceed with $1 billion in previously announced financing agreements that an analyst said would cost it $100 million a year.
Shares of Reliant, which have lost 80 percent of their value this year, had risen 4.6 percent to close at $5.25 on Friday prior to the announcement on the $300 million facility.
Reliant's board formed a special committee in October to review strategic alternatives to enhance stockholder value, including the sale of all or some of its retail businesses.
Last month, Reliant said it would sell assets of two subsidiaries active in the U.S. Northeastern electric market to Hess Corp (HES.N) by year-end for an undisclosed amount.
The Houston-based company operates more than 14,000 megawatts of generating capacity in the United States, markets energy commodities, and sells electricity to more than 1.8 million residential and business customers primarily in Texas. (Reporting by Braden Reddall; editing by Carol Bishopric)
