Talen Energy Supply, a subsidiary of Talen Energy Corporation, has secured $1.2bn in term loan B financing to support the acquisitions of two natural gas-fired combined cycle generation plants in the US.
This July, Talen agreed to acquire Caithness Energy’s Moxie Freedom Energy Center (Freedom Energy Center) in Pennsylvania and BlackRock’s Guernsey Power Station in Ohio, both located within the Pennsylvania-New Jersey-Maryland Interconnection market, for a net acquisition price of $3.5bn.
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The Freedom Energy Center is a natural gas-fired combined cycle generation plant with a capacity of 1,045MW, situated in Luzerne County.
Located in Guernsey County, meanwhile, the Guernsey Power Station is a natural gas-fired combined cycle generation facility with a capacity of 1,836MW.
Talen has also received commitments to increase its revolving credit facility from $700m to $900m and its standalone letter of credit (LoC) facility from $900m to $1.1bn.
Additionally, the maturity of the standalone LoC facility has been extended from December 2026 to December 2027.
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By GlobalDataThe term loan B financing includes both upfront and delayed draw commitments to provide flexibility in funding the two acquisitions.
If one acquisition is completed by 17 July 2026, or extended to 17 January 2027, the delayed draw component will terminate if not used.
The company also stated that the consummation of the acquisitions is independent of each other, and there is no guarantee that the term financing or any aspect therefore will happen.
Talen Energy is an independent power producer with approximately 10.3GW of power infrastructure in the US, including 2.2GW of nuclear power and a fossil fleet.
