Talen Energy Announces Pricing of Senior Notes Offerings

HOUSTON, Oct. 10, 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 priced offerings of $1.40 billion in aggregate principal amount of 6.250% senior notes due 2034 (the “2034 Notes”) and $1.29 billion in aggregate principal amount of 6.500% senior notes due 2036 (the “2036 Notes” and together with the 2034 Notes, the “Notes”) in private offerings that are exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The offerings are expected to close on October 27, 2025, subject to customary closing conditions.

The Company intends to use the net proceeds of these offerings, together with the net proceeds of a new $1.2 billion senior secured term loan B credit facility, 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.

In the event that (i) one or both of the Acquisitions have not been completed on or prior to 11:59 p.m. (New York City 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) prior to 11:59 p.m. (New York City time) on the Outside Date, (a) we determine that one or both of the Acquisitions will not be consummated on or before the Outside Date or (b) one or both of the Purchase Agreements has been terminated (the earlier to occur of the events described in (i) or (ii), a “Triggering Event”), we will be obligated to redeem within 30 days after the Triggering Event: (1) in the case that the Triggering Event relates to the Freedom Acquisition, $625.0 million aggregate principal amount of the 2034 Notes and $575.0 million aggregate principal amount of the 2036 Notes, (2) in the case that the Triggering Event relates to the Guernsey Acquisition, $900.0 million aggregate principal amount of the 2034 Notes and $790.0 million aggregate principal amount of the 2036 Notes, and (3) in the case that the Triggering Event relates to both Acquisitions, all outstanding Notes. Any such redemption will be made at a price equal to 100% of the issue price of the redeemed Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption.