Talen Energy Announces Successful Repricing and Amendment of Term Loans
Talen Energy announced a successful repricing of its Term Loan B and Term Loan C credit facilities, resulting in a reduction of the interest rate margin by 100 basis points and expected annual interest expense savings of approximately $13 million. The company also obtained amendments to increase its capacity for dispositions, restricted payments, and investments. This positive transaction reflects Talen's strong balance sheet and capital allocation flexibility.
Reduction of interest rate margin by 100 basis points leading to expected annual interest expense savings of approximately $13 million.
Amendments obtained to increase capacity for dispositions, restricted payments, and investments under the primary credit agreement.
Strong market demand for debt showcasing positive momentum for Talen.
Enhanced capital structure and cash flow profile improving the company's financial position.
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In conjunction with the Repricing, Talen obtained certain amendments increasing its capacity for dispositions, restricted payments and investments under its primary credit agreement, along with a waiver of any mandatory prepayment of the Term Loans with proceeds from the previously announced sale of its approximately 1.7-gigawatt
"We are pleased with the strong market demand for our debt, which provided an opportunity to further improve our capital structure and cash flow profile," said Talen Chief Financial Officer Terry Nutt. "Our balance sheet remains strong, with net leverage well below our target of 3.5x. This Repricing reflects Talen's continued positive momentum and enables greater flexibility in our capital allocation strategy."
This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sale of securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Talen retained White & Case LLP as its counsel for the Repricing.
About Talen
Talen owns and operates approximately 10.7 gigawatts of power infrastructure in
Talen trades on the OTCQX® Best Market under the ticker "TLNE." OTCQX companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with
Additional Information
For additional information and updates about Talen, please visit our Investor Relations webpage at https://talenenergy.investorroom.com, or contact:
Investor Relations:
Ellen Liu
Senior Director, Investor Relations
InvestorRelations@talenenergy.com
Media:
Taryne Williams
Director, Corporate Communications
Taryne.Williams@talenenergy.com
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the federal securities laws, which statements are subject to substantial risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this communication, or incorporated by reference into this communication, are forward-looking statements. Throughout this communication, we have attempted to identify forward-looking statements by using words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecasts," "goal," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "will," or other forms of these words or similar words or expressions or the negative thereof, although not all forward-looking statements contain these terms. Forward-looking statements address future events and conditions concerning, among other things capital expenditures, earnings, litigation, regulatory matters, hedging, liquidity and capital resources and accounting matters. Forward-looking statements are subject to substantial risks and uncertainties that could cause our future business, financial condition, results of operations or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this communication. All of our forward-looking statements include assumptions underlying or relating to such statements that may cause actual results to differ materially from expectations, and are subject to numerous factors that present considerable risks and uncertainties.
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SOURCE Talen Energy Corporation
FAQ
<p>What is the new applicable rate for Talen's Term Loans after the repricing?</p>
The new applicable rate for Talen's Term Loans is the Secured Overnight Financing Rate (SOFR) plus 350 basis points.
<p>How much annual interest expense savings are expected as a result of the repricing?</p>
Approximately $13 million in annual interest expense savings are expected due to the repricing.
<p>What amendments were obtained by Talen regarding its credit agreement?</p>
Talen obtained amendments to increase its capacity for dispositions, restricted payments, and investments under its primary credit agreement.
<p>Who did Talen Energy retain as its counsel for the repricing?</p>
Talen retained White & Case LLP as its counsel for the repricing.
