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Talen Energy Supply launches tender offers for up to $200M of senior notes


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Talen Energy Supply launches tender offers for up to $200M of senior notes

Talen Energy Supply LLC launched cash tender offers to purchase up to $200 million of its outstanding $2.1 billion senior notes.

The tender offers involve approximately $200.4 million of 6% notes due 2036, $98.1 million of 6.5% notes due 2024, $29.4 million of 7% notes due 2027, $600 million of 6.5% notes due 2025, $625 million of 10.5% notes due 2026, $154.9 million of 4.6% notes due 2021, $16.9 million of 4.625% notes due 2019 and $400 million of 9.5% notes due 2022.

The Talen Energy Corp. subsidiary will purchase the notes based on the priority order for each series, with 1 being the highest acceptance priority level for the 2036 notes and 8 being the lowest acceptance priority level for the 2022 notes.

The company will pay tender offer considerations of $480 for the 2036 notes, $675 for the 2024 notes, $680 for the 2027 notes, $720 for the 2025 notes, $855 for the 2026 notes, $880 for the 2021 notes, $955 for the 2019 notes and $960 for the 2022 notes for each $1,000 principal amount of notes tendered.

Holders who tender their notes at or prior to 5 p.m. ET on Jan. 15 will get an early tender payment of $50 per $1,000 principal amount of notes.

The offers will expire at 11:59 p.m. ET on Jan. 30, unless earlier terminated by the company.

Talen Energy Supply plans to fund the tender offer with borrowings under its revolving credit facility. The company said it may repay a portion of its revolving credit facility over time through cash generated from operating activities, working capital initiatives and asset sales or refinancing alternatives.

Credit Suisse Securities (USA) LLC is serving as the sole dealer manager for the tender offers.