Talen Energy Prices $4B of 6.125% and 6.375% Senior Notes to Fund 2.45GW Acquisition
Talen Energy Supply has priced $1.5 billion 6.125% notes due 2031 and $2.5 billion 6.375% notes due 2033, closing April 29, 2026. Proceeds will fund acquisition of 2,451 MW across three plants and redeem 8.625% notes due 2030, with mandatory redemption if the deal isn’t closed by January 15, 2027.
1. Pricing of Senior Notes
Talen Energy Supply, LLC has priced $1.5 billion of 6.125% senior notes due 2031 and $2.5 billion of 6.375% senior notes due 2033 in private placements to qualified institutional buyers and accredited investors, with settlement expected on April 29, 2026.
2. Use of Proceeds
Net proceeds will fund the acquisition of 2,451 MW of capacity from the Lawrenceburg Power Plant (1,120 MW), Waterford Energy Center (875 MW) and Darby Generation Station (456 MW) under the January 15, 2026 merger agreement, and will redeem all outstanding 8.625% senior secured notes due 2030.
3. Mandatory Redemption Provision
If the acquisition is not consummated by the outside date of January 15, 2027 (extendable to July 15, 2027), Talen must redeem $1.05 billion of the 2031 notes and $1.75 billion of the 2033 notes at 100% of issue price plus accrued interest.