Talen Energy Corporation ("TEC") has recently priced offerings of $1.40 billion in aggregate principal amount of 6.250% senior notes due 2034 and $1.29 billion in aggregate principal amount of 6.500% senior notes due 2036. These private offerings are expected to close on October 27, 2025. The net proceeds from these offerings, along with the net proceeds of a new $1.2 billion senior secured term loan B credit facility, will be used to fund the acquisitions of the Freedom Energy Center and the Guernsey Power Station.
The Freedom Energy Center is a 1,045 MW natural gas-fired combined cycle generation plant located in Luzerne County, Pennsylvania, while the Guernsey Power Station is a 1,836 MW natural gas-fired combined cycle generation plant located in Guernsey County, Ohio. Both acquisitions are being made pursuant to purchase and sale agreements dated July 17, 2025, among Talen Generation, LLC and affiliates of Caithness Energy, L.L.C.
In the event that the acquisitions have not been completed by a specified date or if certain events occur, Talen Energy will be obligated to redeem portions of the notes. The notes and related guarantees are being offered only to qualified institutional buyers and non-U.S. persons.
Talen Energy, a leading independent power producer and energy infrastructure company, owns and operates approximately 10.3 gigawatts of power infrastructure in the United States. This includes 2.2 gigawatts of nuclear power and a significant dispatchable fossil fleet. The company produces and sells electricity, capacity, and ancillary services into wholesale U.S. power markets.
The offerings of the notes are being made only by means of a confidential offering circular.
Following these announcements, the company's shares moved -0.3%, and are now trading at a price of $444.50. Check out the company's full 8-K submission here.
