Talen Energy Announces Launch of $1.2 Billion Term Loan B Financing, $200 Million Upsize of Revolving Credit Facility and $200 Million Upsize of Stand-Alone Letter of Credit Facility

Rhea-AI Summary

Talen Energy (NASDAQ: TLN) announced a $1.2 billion incremental Term Loan B, a $200 million upsize of its revolving credit facility to $900 million, and a $200 million upsize of its stand-alone letter of credit facility to $1.1 billion with the Stand-Alone L/C maturity extended to December 2027.

The company intends to use Term Loan proceeds and new unsecured debt to fund two purchase agreements dated July 17, 2025 to acquire the Freedom Energy Center (1,045 MW) and the Guernsey Power Station (1,836 MW). The Term Financing includes upfront and delayed-draw commitments and contains an Outside Date of July 17, 2026 (extendable to January 17, 2027); consummation and financing are not guaranteed.

Positive

• $1.2B incremental Term Loan B launched
• Revolving credit facility increased by $200M to $900M
• Stand-Alone L/C facility upsized by $200M to $1.1B
• Stand-Alone L/C maturity extended to Dec 2027
• Planned funding to acquire Freedom Energy Center (1,045 MW)
• Planned funding to acquire Guernsey Power Station (1,836 MW)

Negative

• Term Financing and other debt are not guaranteed
• Delayed-draw component automatically terminates if only one acquisition closes by the Outside Date
• Acquisitions must close by July 17, 2026 (or extended to Jan 17, 2027), creating timing risk

Insights

Capital Markets / Corporate Finance Analyst

Talen launched a $1.2 billion Term Loan B, upsized credit lines, and tied proceeds to two combined‑cycle plant acquisitions.

The financing package combines a $1.2 billion incremental Term Loan B with a $200 million upsized revolving credit facility to $900 million and a $200 million upsized stand‑alone letter of credit facility to $1.1 billion. The Term Financing includes upfront and delayed draw components to fund purchases of the Freedom Energy Center (1,045 MW) and Guernsey Power Station (1,836 MW), and the Stand‑Alone L/C maturity was extended to December 2027.

Key dependencies and risks rest on consummation of the two Acquisitions and draw sequencing; the delayed draw terminates if only one Acquisition closes by the Outside Date of July 17, 2026 (or extended to January 17, 2027). Watch for definitive closing notices, the actual use of the delayed draw, and any amendments to commitment sizes or maturity timing; these items will determine funding certainty and near‑term leverage profile.

HOUSTON, Oct. 06, 2025 (GLOBE NEWSWIRE) -- Talen Energy Corporation (“TEC,” “we” or “our”) (NASDAQ: TLN) announced today that Talen Energy Supply, LLC (“TES” or the “Company”), a direct wholly owned subsidiary of TEC, has (a) launched a $1.2 billion incremental Term Loan B financing (the “Term Financing”), (b) received commitments to upsize its existing $700 million revolving credit facility by $200 million to $900 million, (c) received commitments to upsize its existing $900 million stand-alone letter of credit facility (the “Stand-Alone L/C Facility”) by $200 million to $1.1 billion and (d) agreed to extend the maturity of the Stand-Alone L/C Facility from December 2026 to December 2027.

The Company intends to use the net proceeds of the Term Financing, together with net proceeds from new unsecured indebtedness, to fund the previously announced acquisitions (each an “Acquisition” and collectively, the “Acquisitions”) of (i) the Freedom Energy Center, a 1,045 MW natural gas fired combined cycle generation plant located in Luzerne County, Pennsylvania (the “Freedom Acquisition”) and (ii) the Guernsey Power Station, a 1,836 MW natural gas fired combined cycle generation plant located in Guernsey County, Ohio (the “Guernsey Acquisition”). Each Acquisition is being made pursuant to a purchase and sale agreement (each a “Purchase Agreement” and collectively, the “Purchase Agreements”) each dated July 17, 2025, among Talen Generation, LLC, an indirect wholly owned subsidiary of TEC, and affiliates of Caithness Energy, L.L.C.

To the extent the Acquisitions do not close concurrently, the Term Financing will include both upfront and delayed draw commitments, providing the Company with flexibility to meet its funding and timing needs for the Acquisitions. In the event that (i) only one of the Acquisitions has been completed on or prior to 11:59 p.m. (Eastern Time) on July 17, 2026 (or, to the extent such date is automatically extended pursuant to the terms of the applicable Purchase Agreement, to January 17, 2027) (such date, as extended if applicable, the “Outside Date”) or (ii) one of the Acquisitions has been completed without the use of the delayed draw component of the Term Financing, such delayed draw component will automatically terminate. The consummation of the Acquisitions are not conditioned on each other and there is no guarantee that the Term Financing or any element thereof will occur.

About Talen

Talen Energy (NASDAQ: TLN) is a leading independent power producer and energy infrastructure company dedicated to powering the future. We own and operate approximately 10.3 gigawatts of power infrastructure in the United States, including 2.2 gigawatts of nuclear power and a significant dispatchable fossil fleet. We produce and sell electricity, capacity, and ancillary services into wholesale U.S. power markets, with our generation fleet principally located in the Mid-Atlantic and Montana. Our team is committed to generating power safely and reliably delivering the most value per megawatt produced. Talen is also powering the digital infrastructure revolution. We are well-positioned to serve this growing industry, as artificial intelligence data centers increasingly demand more reliable, clean power. Talen is headquartered in Houston, Texas.

Investor Relations:
Sergio Castro
Vice President & Treasurer
InvestorRelations@talenenergy.com

Media:
Taryne Williams
Director, Corporate Communications
Taryne.Williams@talenenergy.com

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the federal securities laws, which statements are subject to substantial risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this communication, or incorporated by reference into this communication, are forward-looking statements. Throughout this communication, we have attempted to identify forward-looking statements by using words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecasts,” “goal,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” or other forms of these words or similar words or expressions or the negative thereof, although not all forward-looking statements contain these terms. Forward-looking statements address future events and conditions concerning, among other things, the proposed Acquisitions, the expected closing of the proposed transactions and the timing thereof, the financing of the proposed transactions, capital expenditures, earnings, litigation, regulatory matters, hedging, liquidity and capital resources, accounting matters, expectations, beliefs, plans, objectives, goals, strategies, future events or performance, shareholder returns and underlying assumptions. Forward-looking statements are subject to substantial risks and uncertainties that could cause our future business, financial condition, results of operations or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this communication. All of our forward-looking statements include assumptions underlying or relating to such statements that may cause actual results to differ materially from expectations and are subject to numerous factors that present considerable risks and uncertainties.

Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

FAQ

What financing did Talen Energy (TLN) announce on October 6, 2025?

Talen launched a $1.2B Term Loan B, upsized its revolver by $200M to $900M, and upsized its stand-alone L/C by $200M to $1.1B.

What acquisitions will TLN fund with the Term Loan B proceeds?

Proceeds are intended to fund the purchases of Freedom Energy Center (1,045 MW) and Guernsey Power Station (1,836 MW).

When were the purchase agreements for the TLN acquisitions signed?

Each Purchase Agreement is dated July 17, 2025.

What is the Outside Date for closing TLN's acquisitions and financing?

The Outside Date is July 17, 2026, extendable to January 17, 2027 under certain terms.

Does the Term Loan B funding depend on both acquisitions closing?

No — the acquisitions are not conditioned on each other, and the Term Financing includes upfront and delayed draws for flexibility.

What happens to the delayed-draw portion if only one acquisition closes?

If only one acquisition closes by the Outside Date or the delayed draw isn't used, the delayed-draw component automatically terminates.