Talen Energy Supply Announces Successful Completion of Consent Solicitation for Amendments to 8.625% Senior Secured Notes Due 2030
Talen Energy (NASDAQ: TLN) announced that its subsidiary, Talen Energy Supply, has successfully completed its consent solicitation for amendments to its 8.625% Senior Secured Notes due 2030. The company received sufficient consents to modify certain provisions and covenants in the Indenture to align with their credit agreement dated May 17, 2023.
The amendments also include waiving Talen's right to optionally redeem up to 10.0% of the Notes prior to June 1, 2025 at 103.000% of the principal amount. The consent solicitation expired on January 13, 2025, and the company expects to pay the consent fee to participating noteholders on January 14, 2025. RBC Capital Markets acted as lead solicitation agent, with Citigroup Global Markets as co-agent.
Talen Energy (NASDAQ: TLN) ha annunciato che la sua controllata, Talen Energy Supply, ha completato con successo la richiesta di consenso per le modifiche alle sue Note Senior Garantite al 8,625% con scadenza nel 2030. L'azienda ha ricevuto consensi sufficienti per modificare alcune disposizioni e convenzioni nel Contratto per allinearsi con il loro accordo di credito datato 17 maggio 2023.
Le modifiche includono anche la rinuncia al diritto di Talen di rimborsare facoltativamente fino al 10,0% delle Note prima del 1° giugno 2025 al 103,000% dell'importo principale. La richiesta di consenso è scaduta il 13 gennaio 2025 e l'azienda prevede di pagare la commissione di consenso agli obbligazionisti partecipanti il 14 gennaio 2025. RBC Capital Markets ha agito come principale agente di sollecitazione, con Citigroup Global Markets in qualità di co-agente.
Talen Energy (NASDAQ: TLN) anunció que su subsidiaria, Talen Energy Supply, ha completado con éxito su solicitud de consentimiento para enmiendas a sus Notas Senior Garantizadas al 8.625% que vencen en 2030. La empresa recibió suficientes consentimientos para modificar ciertas disposiciones y convenios en el Contrato para alinearse con su acuerdo de crédito fechado el 17 de mayo de 2023.
Las enmiendas también incluyen la renuncia al derecho de Talen de redimir opcionalmente hasta el 10.0% de las Notas antes del 1 de junio de 2025 al 103.000% del monto principal. La solicitud de consentimiento expiró el 13 de enero de 2025, y la empresa espera pagar la tarifa de consentimiento a los tenedores de notas participantes el 14 de enero de 2025. RBC Capital Markets actuó como agente principal de solicitud, con Citigroup Global Markets como co-agente.
탈렌 에너지 (NASDAQ: TLN)는 그 자회사 탈렌 에너지 공급이 2030년 만기 8.625% 보장 노트의 개정에 대한 동의 요청을 성공적으로 완료했다고 발표했습니다. 회사는 2023년 5월 17일자 신용 계약에 맞게 계약서의 특정 조항과 계약을 수정하기 위해 충분한 동의를 받았습니다.
이 개정 사항에는 2025년 6월 1일 이전에 본액의 103.000%로 최대 10.0%의 노트를 선택적으로 상환할 수 있는 탈렌의 권리를 포기하는 조항도 포함되어 있습니다. 동의 요청은 2025년 1월 13일에 만료되며, 회사는 2025년 1월 14일 참여한 채권자에게 동의 수수료를 지급할 것으로 예상합니다. RBC 캐피탈 마켓이 주요 동의 요청 대행사로 활동했으며, 씨티그룹 글로벌 마켓이 공동 대행사로 참여했습니다.
Talen Energy (NASDAQ: TLN) a annoncé que sa filiale, Talen Energy Supply, a réussi à compléter sa sollicitation de consentement pour des modifications de ses Obligations Seniors Sécurisées à 8,625 % arrivant à échéance en 2030. La société a reçu des consentements suffisants pour modifier certaines dispositions et engagements dans l'Acte afin de s'aligner sur leur accord de crédit daté du 17 mai 2023.
Les modifications comprennent également la renonciation par Talen à son droit de rembourser optionnellement jusqu'à 10,0 % des Obligations avant le 1er juin 2025 à 103,000 % du montant principal. La sollicitation de consentement a expiré le 13 janvier 2025, et la société s'attend à payer les frais de consentement aux obligataires participants le 14 janvier 2025. RBC Capital Markets a agi en tant qu'agent principal de sollicitation, avec Citigroup Global Markets comme co-agent.
Talen Energy (NASDAQ: TLN) gab bekannt, dass ihre Tochtergesellschaft Talen Energy Supply erfolgreich eine Konsensabfrage zur Änderung ihrer 8,625% Senior Secured Notes mit Fälligkeit im Jahr 2030 abgeschlossen hat. Das Unternehmen erhielt ausreichende Zustimmungen, um bestimmte Bestimmungen und Vereinbarungen im Indenturen anzupassen und mit ihrem Kreditvertrag vom 17. Mai 2023 in Einklang zu bringen.
Die Änderungen beinhalten auch den Verzicht auf Talens Recht, bis zu 10,0% der Notes vor dem 1. Juni 2025 zu einem Preis von 103,000% des Nennbetrags optional zurückzukaufen. Die Konsensabfrage lief am 13. Januar 2025 aus, und das Unternehmen erwartet, die Konsensgebühr an teilnehmende Noteinhaber am 14. Januar 2025 zu zahlen. RBC Capital Markets fungierte als Hauptsolizitationsagent, Citigroup Global Markets als Co-Agent.
- Successfully secured noteholder approval for indenture amendments
- Alignment of note covenants with existing credit agreement terms, potentially simplifying compliance
- Waiver of early redemption rights for up to 10% of notes at 103% reduces financial flexibility
- Additional consent fees to be paid to noteholders increase costs
Insights
The successful completion of Talen Energy Supply's consent solicitation for its
The harmonization of debt covenants across different instruments typically indicates a move toward operational flexibility and simplified compliance reporting. By waiving the early redemption option, Talen has effectively removed uncertainty around potential early bond calls, providing clearer visibility into future cash flows for bondholders. This modification suggests the company is prioritizing debt stability over maintaining refinancing optionality.
The high consent participation rate, evidenced by reaching the requisite threshold, demonstrates strong bondholder support and confidence in Talen's financial strategy. The involvement of major financial institutions like RBC Capital Markets and Citigroup as solicitation agents adds credibility to the transaction.
This covenant modification represents a meaningful enhancement to Talen's capital structure flexibility. By aligning the bond indenture terms with the credit agreement, the company reduces administrative complexity and potentially lowers compliance costs. The timing of this amendment, coming less than a year after the original note issuance, suggests proactive balance sheet management.
For investors, the removal of the
The swift execution of the consent solicitation, completed within a week of announcement, reflects efficient market engagement and strong relationship management with institutional investors. This successful amendment could potentially facilitate future capital market activities by demonstrating Talen's ability to effectively manage its stakeholder relationships.
HOUSTON, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Talen Energy Corporation (NASDAQ: TLN) announced today that its wholly owned subsidiary, Talen Energy Supply, LLC (“Talen” or the “Company”), received the requisite consents in its previously announced solicitation of consents (the “Consents”) from holders of its
Talen sought the Proposed Amendments in order to (i) modify certain provisions, including certain covenants and related definitions, in the Indenture in order to substantially conform to the corresponding provisions set forth in the Company’s credit agreement dated May 17, 2023 (as amended, supplemented or otherwise modified prior to the date hereof) and (ii) waive Talen's right to optionally redeem up to
The consent solicitation for the Notes (the “Consent Solicitation”) was made solely on the terms and subject to the conditions set forth in the consent solicitation statement dated January 6, 2025 (the “Consent Solicitation Statement”). The Consent Solicitation expired at 5:00 p.m. (New York City time) on January 13, 2025 (the “Expiration Time”). The Consents received in the Consent Solicitation were sufficient to effect the Proposed Amendments to the indenture governing the Notes.
Accordingly, the Company has entered into the fourth supplemental indenture to the Indenture (the “Fourth Supplemental Indenture”) to effect the Proposed Amendments. The Proposed Amendments will become operative upon the payment of the consent fee to the holders of the Notes who validly delivered Consents, which the Company expects to pay on January 14, 2025.
RBC Capital Markets, LLC acted as lead solicitation agent and Citigroup Global Markets Inc. acted as a solicitation agent in connection with the Consent Solicitation.
Any questions or requests for assistance may be directed to the Information Agent at its telephone numbers or e-mail address set forth below.
The Lead Solicitation Agent for the Consent Solicitation is:
RBC Capital Markets, LLC
Toll-Free: (877) 381-2099
Collect: (212) 618-7843
E-mail: liability.management@rbccm.com
The Information Agent for the Consent Solicitation is:
D.F. King & Co., Inc.
Banks and Brokers call: (212) 269-5550 (collect)
All others call toll-free: (800) 769-4414
E-mail: TLNE@dfking.com
THIS PRESS RELEASE IS NEITHER AN OFFER TO SELL NOR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY. THIS ANNOUNCEMENT IS ALSO NOT A SOLICITATION OF CONSENTS TO ANY PROPOSED AMENDMENTS.
About Talen
Talen Energy (NASDAQ: TLN) is a leading independent power producer and energy infrastructure company dedicated to powering the future. We own and operate approximately 10.7 gigawatts of power infrastructure in the United States, including 2.2 gigawatts of nuclear power and a significant dispatchable fossil fleet. We produce and sell electricity, capacity, and ancillary services into wholesale U.S. power markets, with our generation fleet principally located in the Mid-Atlantic and Montana. Our team is committed to generating power safely and reliably, delivering the most value per megawatt produced and driving the energy transition. Talen is also powering the digital infrastructure revolution. We are well-positioned to capture this significant growth opportunity, as data centers serving artificial intelligence increasingly demand more reliable, clean power. Talen is headquartered in Houston, Texas.
Investor Relations:
Ellen Liu
Senior Director, Investor Relations
InvestorRelations@talenenergy.com
Media:
Taryne Williams
Director, Corporate Communications
Taryne.Williams@talenenergy.com
Forward-Looking Statements
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FAQ
What changes were made to Talen Energy's (TLN) 8.625% Senior Secured Notes due 2030?
When will Talen Energy (TLN) pay the consent fee for the 2030 Notes amendments?
What is the interest rate on Talen Energy's (TLN) Senior Secured Notes affected by the amendments?
Who were the solicitation agents for Talen Energy's (TLN) consent solicitation?
