THE WOODLANDS, Texas — Talen Energy Supply, LLC (the “Company” or “Talen Energy Supply“) announced today that it intends to offer, subject to market and other conditions, $470 million in aggregate principal amount of its senior secured notes due 2028 (the “Notes“) in a private offering. The Notes will be guaranteed by certain of Talen Energy Supply’s subsidiaries that guarantee its existing indebtedness. The Notes and the guarantees will be secured equally and ratably with the Company’s senior secured notes due 2027, existing revolving credit facility and the New Term Loan B (described below) by a first-priority lien on substantially all of the property and assets of the Company and the guarantors. Talen Energy Supply intends to use the net proceeds from this offering, together with cash on hand and proceeds from a new seven-year $500 million Term Loan B facility that it intends to begin syndicating today and to close concurrently with the closing of the Notes (the “New Term Loan B“), to repay in full its existing Term Loan B-1 and Term Loan B-2 and to pay transaction fees and expenses.
The Notes will be offered and sold only to qualified institutional buyers in the United States pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act“) and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. The Notes will not be registered under the Securities Act, and may not be offered or sold in the United States without registration under the Securities Act or pursuant to an applicable exemption from such registration requirements.
This announcement is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Source: Talen Energy Supply
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