Talen Energy announces completion of refinancing transactions

Talen Energy (TLN) announced that the Company has closed on several financing transactions that improve the Company’s debt structure and financing cost. The Transactions include: repricing the Company’s existing $700M revolving credit facility to reduce the current interest rate margin by 100 basis points, extending the maturity of the Revolver from May 2028 to December 2029, and increasing available letter of credit capacity under the Revolver from $475M to $700M; repricing its existing $859M in Term B loans to reduce the current interest rate margin by 100 basis points to align pricing with its recently issued $850M in incremental Term B loans; issuing a new, standalone $900M secured LC facility; repaying in full its existing $470M in Term C loans and terminating the associated LC facility; and terminating its existing $75M standalone bilateral LC facility. Together, the Transactions are expected to result in annual savings of approximately $28M in interest, fees, and other expenses, not including additional interest from the Incremental TLB. In conjunction with the Transactions, Talen obtained certain amendments increasing its flexibility for restricted payments, investments, and dispositions under its primary credit agreement, which governs the Revolver, Existing TLB, Incremental TLB, and New LC Facility.