Talen Energy Announces Successful Repricing and Amendment of Term Loans

HOUSTON, May 8, 2024 /PRNewswire/ -- Talen Energy Corporation ("Talen") (OTCQX: TLNE) today announced the successful completion of a favorable repricing (the "Repricing") of its existing $863 million Term Loan B credit facility and its $470 million Term Loan C credit facility (collectively, the "Term Loans"). The new applicable rate for the Term Loans is the Secured Overnight Financing Rate ("SOFR") plus 350 basis points, which reduces the interest rate margin by 100 basis points. The Repricing also reduces the applicable SOFR floor from 50 to 0 basis points. This transaction is expected to result in interest expense savings to Talen of approximately $13 million annually.

In conjunction with the Repricing, Talen obtained certain amendments increasing its capacity for dispositions, restricted payments and investments under its primary credit agreement, along with a waiver of any mandatory prepayment of the Term Loans with proceeds from the previously announced sale of its approximately 1.7-gigawatt Texas generation portfolio, providing Talen with additional capital allocation flexibility.

"We are pleased with the strong market demand for our debt, which provided an opportunity to further improve our capital structure and cash flow profile," said Talen Chief Financial Officer Terry Nutt. "Our balance sheet remains strong, with net leverage well below our target of 3.5x. This Repricing reflects Talen's continued positive momentum and enables greater flexibility in our capital allocation strategy."

This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sale of securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Talen retained White & Case LLP as its counsel for the Repricing.

About Talen
Talen owns and operates approximately 10.7 gigawatts of power infrastructure in the United States. We produce and sell electricity, capacity, and ancillary services into wholesale U.S. power markets, including PJM and WECC, with our generation fleet principally located in the Mid-Atlantic and Montana. Talen is headquartered in Houston, Texas. For more information visit www.talenenergy.com.

Talen trades on the OTCQX^® Best Market under the ticker "TLNE." OTCQX companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, and have a professional third-party sponsor introduction. Investors can find current financial disclosures and Real-Time Level 2 quotes for the company on www.otcmarkets.com/stock/TLNE/overview.

Additional Information

For additional information and updates about Talen, please visit our Investor Relations webpage at https://talenenergy.investorroom.com, or contact:

Investor Relations:
Ellen Liu
Senior Director, Investor Relations
[email protected]

Media:
Taryne Williams
Director, Corporate Communications
[email protected]

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 capital expenditures, earnings, litigation, regulatory matters, hedging, liquidity and capital resources and accounting matters. 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.

SOURCE Talen Energy Corporation