Talen Energy Corporation ("TEC") has announced the pricing of senior notes offerings, with $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. The offerings are expected to close on October 27, 2025.
The net proceeds of 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 previously announced acquisitions of the Freedom Energy Center and the Guernsey Power Station. Each acquisition is being made pursuant to a purchase and sale agreement dated July 17, 2025, with affiliates of Caithness Energy, L.L.C.
In the event that one or both of the acquisitions have not been completed by the specified dates, Talen Energy will be obligated to redeem a certain amount of the notes within 30 days after the triggering event. This redemption will be made at a price equal to 100% of the issue price of the redeemed notes, plus accrued and unpaid interest, if any, to but excluding, the date of redemption.
The offerings of the notes are being made only to qualified institutional buyers and non-U.S. persons and have not been registered under the securities act. Therefore, they may not be offered or sold in the United States or to any U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the securities act and applicable state securities laws.
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's generation fleet is principally located in the mid-Atlantic and Montana. Talen Energy is committed to generating power safely and reliably delivering the most value per megawatt produced. The company is headquartered in Houston, Texas. Today the company's shares have moved -7.12% to a price of $412.83. For the full picture, make sure to review Talen Energy Corp's 8-K report.
