Talen Energy Announces Pricing of Senior Notes Offerings

Core Viewpoint - Talen Energy Corporation has announced the pricing of $1.40 billion in 6.250% senior notes due 2034 and $1.29 billion in 6.500% senior notes due 2036 to fund acquisitions of two natural gas-fired power plants [1][2] Group 1: Offerings and Financial Details - The total amount of the offerings is $2.69 billion, consisting of the 2034 Notes and 2036 Notes [1] - The offerings are expected to close on October 27, 2025, subject to customary closing conditions [1] - The company plans to use the net proceeds from these offerings along with a new $1.2 billion senior secured term loan B credit facility to fund the acquisitions [2] Group 2: Acquisitions - The acquisitions include the Freedom Energy Center, a 1,045 MW natural gas-fired combined cycle generation plant in Pennsylvania, and the Guernsey Power Station, a 1,836 MW natural gas-fired combined cycle generation plant in Ohio [2] - Both acquisitions are being made under purchase agreements dated July 17, 2025, with affiliates of Caithness Energy, L.L.C. [2] Group 3: Redemption Conditions - If the acquisitions are not completed by July 17, 2026, or if a triggering event occurs, the company will be obligated to redeem portions of the senior notes [3] - The redemption amounts include $625 million of the 2034 Notes and $575 million of the 2036 Notes related to the Freedom Acquisition, and $900 million of the 2034 Notes and $790 million of the 2036 Notes related to the Guernsey Acquisition [3] Group 4: Company Overview - Talen Energy is a leading independent power producer with approximately 10.3 gigawatts of power infrastructure in the U.S., including 2.2 gigawatts of nuclear power [6] - The company is positioned to serve the growing demand for reliable, clean power, particularly for artificial intelligence data centers [6]