Talen Energy announces launch of $1.2B term loan B financing

Talen Energy (TLN) announced that Talen Energy Supply, a direct wholly owned subsidiary of TEC, has launched a $1.2 billion incremental Term Loan B financing, received commitments to upsize its existing $700 million revolving credit facility by $200 million to $900 million, received commitments to upsize its existing $900 million stand-alone letter of credit facility by $200 million to $1.1 billion and agreed to extend the maturity of the Stand-Alone L/C Facility from December 2026 to December 2027. The Company intends to use the net proceeds of the Term Financing, together with net proceeds from new unsecured indebtedness, to fund the previously announced acquisitions of the Freedom Energy Center, a 1,045 MW natural gas fired combined cycle generation plant located in Luzerne County, Pennsylvania and the Guernsey Power Station, a 1,836 MW natural gas fired combined cycle generation plant located in Guernsey County, Ohio. Each Acquisition is being made pursuant to a purchase and sale agreement each dated July 17, 2025, among Talen Generation, LLC, an indirect wholly owned subsidiary of TEC, and affiliates of Caithness Energy,. To the extent the Acquisitions do not close concurrently, the Term Financing will include both upfront and delayed draw commitments, providing the Company with flexibility to meet its funding and timing needs for the Acquisitions. In the event that only one of the Acquisitions has been completed on or prior to 11:59 p.m. on July 17, 2026 or one of the Acquisitions has been completed without the use of the delayed draw component of the Term Financing, such delayed draw component will automatically terminate. The consummation of the Acquisitions are not conditioned on each other and there is no guarantee that the Term Financing or any element thereof will occur.