Current TLN Stock Info

Talen-Riverstone merger is awaiting NRC approval

The Federal Energy Regulatory Commission (FERC) issued an order approving the proposed merger of Talen Energy Corporation (ticker: TLN) with an affiliate of Riverstone Holdings LLC, a private equity firm.

FERC said that the merger would not have a detrimental effect on competitive wholesale power markets but the agency did issue certain conditions.

FERC Approves $5.2 billion Talen Energy-Riverstone Merger

FERC Approves $5.2 billion Talen Energy-Riverstone Merger

Under terms of the merger agreement, which Talen Energy shareholders approved on Oct. 6, 2016, all outstanding shares of Talen Energy common stock not currently owned by Riverstone affiliated entities will be acquired for $14.00 per share in cash. Affiliates of Riverstone currently own approximately 35 percent of the outstanding shares of Talen Energy common stock, which were issued in the June 2015 transaction that established Talen Energy by combining competitive generation assets that had been owned by affiliates of PPL Corporation and affiliates of Riverstone.

The transaction remains on schedule to close by the end of 2016, subject to receipt of Nuclear Regulatory Commission (NRC) approval and other customary closing conditions, Talen said in a press release.

On Oct. 19, 2016, Talen Energy Supply, LLC, an indirect wholly owned subsidiary of Talen Energy announced it had priced a $600 million term loan B facility. The net proceeds of the facility are expected to be used in connection with the Talen-Riverstone merger and for the working capital needs and other general corporate purposes, including the repayment of indebtedness under the revolving credit facility, the company said in a separate press release.

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.

Talen Energy owns or controls 16,000 megawatts of generating capacity in structured wholesale power markets in the Northeast, Mid-Atlantic and Southwest regions of the U.S. Of the larger generating stations in the Talen portfolio, four are coal fired, six are natural gas fired, one is a combination of coal, gas and oil-fired, and one is nuclear: the Susquehanna Nuclear Power Plant.

Riverstone has committed approximately $30 billion to more than 120 energy investments in North America, Latin America, Europe, Africa and Asia.

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