Retail Supplier Parent Upsizes and Closes $848 Million First-Lien Financing

Talen Energy Corporation ("TEC" or "Talen") today announced that its wholly-owned subsidiary Talen Energy Supply LLC ("TES") has upsized and closed on the previously announced first-lien revolving credit facility commitment led by GoldenTree Asset Management LP and Silver Point Finance, LLC in the aggregate amount of $848 million.

Concurrent with the closing, TES has expanded the facility to additional capital partners including Apollo Capital Management LP, Diameter Capital Partners LP, and Owl Creek Asset Management, LP, through their respective managed funds. Additionally, TES obtained the requisite approvals and waivers from its bank group led by Citi as administrative agent under its existing revolving credit facility to enter into this financing.

"This facility, which matures in September 2024, will primarily be used to fund elevated commodity working capital requirements during the winter period, repay $238 million of borrowings outstanding under TES' revolving credit facility, fund up to $200 million for working capital and other general corporate purposes and to pay transaction fees and expenses related to the new financing facility," Talen said

"This financing will help unlock the value of our TES assets in this strong winter commodity environment while enabling Talen to continue executing our energy transition strategy," said TEC Chief Executive Officer Alex Hernandez.

As previously reported, Talen's transition strategy includes a shift to renewables and digital infrastructure.