Talen Energy Corporation Announces Early Tender Results of its Previously Announced Tender Offer to Repurchase up to $600,000,000 of its Common Stock
Talen Energy (OTCQX: TLNE) announced early tender results for its modified Dutch auction tender offer, intending to repurchase up to $600 million of its common stock, with an option for an additional $12 million.
As of June 12, 2024, tenders for 15,623,319 shares were received, and the company accepted $612 million worth, or 5,275,862 shares, representing 9% of its outstanding stock.
The purchase price was set at $116 per share. This repurchase is part of a $1 billion share buyback program authorized by the Board in May 2024.
The offer is oversubscribed, and no further shares will be accepted. Goldman Sachs & Co. managed the tender offer, with D.F. King & Co. Inc. as the information agent and Equiniti Trust Company, as the depositary.
- Talen Energy repurchased $612 million worth of stock, indicating strong financial health and commitment to shareholder returns.
- The tender offer was oversubscribed, demonstrating investor confidence.
- The company has nearly $400 million remaining in its authorized share buyback program for future repurchases.
- Repurchase of 9% of outstanding stock could positively impact EPS by reducing the number of shares in circulation.
- The early tender offer's oversubscription means some shareholders who wished to tender their shares may be dissatisfied.
- The use of $612 million in cash reserves for the repurchase could limit funds available for other strategic investments or operations.
- The proration factor of approximately 52.5% means not all tendered shares were accepted, which might disappoint some investors.
"We are pleased today to demonstrate our ongoing commitment to shareholder returns, in the form of this successful
As of 5:00 p.m. ET on June 12, 2024 (the "Early Tender Time"), valid tenders have been delivered with respect to a total of 15,623,319 Shares of the Company's Common Stock. The Company has accepted for payment and will purchase
Although the Tender Offer expires at 5:00 p.m. ET on June 27, 2024, because the Tender Offer was oversubscribed at the Early Tender Time, no additional Shares will be accepted. Shares that were tendered and not validly withdrawn prior to the Early Tender Time may not be withdrawn unless otherwise required by applicable law.
Goldman Sachs & Co. LLC is acting as dealer manager for the Tender Offer. The information agent for the Tender Offer is D.F. King & Co. Inc., and the depositary is Equiniti Trust Company, LLC. For questions and information, please call the information agent toll-free at (800) 549-6697.
Certain Information Regarding the Tender Offer
The information in this press release describing the Tender Offer is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell Shares in the Tender Offer. The Tender Offer is being made only pursuant to the Offer to Purchase and related materials that the Company distributed to its stockholders, as it may be amended or supplemented. Stockholders should read such Offer to Purchase and related materials carefully and in their entirety because they contain important information, including the various terms and conditions of the Tender Offer. Stockholders of the Company may obtain a free copy of the Offer to Purchase, Letter of Transmittal and related documents from D.F. King & Co. Inc. toll free at (800) 549-6697 or Goldman Sachs & Co. LLC toll free at (212) 902-1000. Stockholders are urged to carefully read all of these materials prior to making any decision with respect to the Tender Offer. Stockholders and investors who have questions or need assistance may call D.F. King & Co. Inc.
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:
Investor Relations
investorrelations@talenenergy.com
Media:
Taryne Williams
Director, Corporate Communications
Taryne.Williams@talenenergy.com
(610) 601-0327
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 the consummation of the Tender Offer, 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. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update any forward-looking statements beyond what is required under applicable securities law.
SOURCE Talen Energy Corporation
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