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Goldman Sachs, Others Arrange $600MM Term Loan for Talen Energy

October 20, 2016, 07:09 AM
Filed Under: Energy Services

Talen Energy Supply, an indirect wholly owned subsidiary of Talen Energy Corporation, has successfully priced a $600 million term loan B facility. The net proceeds of the facility are expected to be used in connection with the consummation of the previously announced merger of Talen Energy Corporation with an affiliate of Riverstone Holdings LLC (the "Merger") and for the working capital needs and other general corporate purposes of the Company and its subsidiaries and affiliates, including the repayment of indebtedness under the Company's revolving credit facility.

The term loan B facility will be issued at a price equal to 98.5% of its face value, will bear interest at a rate of LIBOR plus 5.00%, with a 1.0% LIBOR floor, and will have a seven year maturity. The term loan B facility will be secured by the same collateral securing, and will be guaranteed by the same direct and indirect wholly owned subsidiaries of the Company that are guarantors of, the Company's revolving credit facility.

The closing of the term loan B facility is subject to customary closing conditions and the closing of the Merger, which is expected to occur by the end of 2016.

Goldman Sachs Bank USA, RBC Capital Markets, Barclays Bank PLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding, Inc. and MUFG will act as joint lead arrangers and joint bookrunners for the term loan B facility.

Talen Energy is one of the largest competitive energy and power generation companies in North America. The company owns or controls 16,000 megawatts of generating capacity in well-developed, structured wholesale power markets, principally in the Northeast, Mid-Atlantic and Southwest regions of the United States.

Riverstone is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately $34 billion of equity capital raised. Riverstone conducts buyout and growth capital investments in the exploration & production, midstream, oilfield services, power and renewable sectors of the energy industry. With offices in New York, London, Houston and Mexico City, the firm has committed approximately $30 billion to more than 120 investments in North America, Latin America, Europe, Africa and Asia.

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