Talen Energy cancels $200 million tender offer for eight note series

By Sarah Lizee

Olympia, Wash., Jan. 23 – Talen Energy Supply, LLC terminated its offer to pay up to $200 million in a tender offer for eight series of notes until 11:59 p.m. ET on Jan. 30, according to a press release.

The company said is decided to cancel the tender offers early due to the acceleration of the preparation timeline for its previously announced investors day on Feb. 12.

Under the tender offer, the total purchase price per $1,000 principal amount was as follows, with the notes listed in order of priority acceptance levels:

• $530 for the $200,418,000 6% senior notes due 2036;

• $725 for the $98,057,000 6½% senior guaranteed notes due 2024;

• $730 for the $29,358,000 7% senior guaranteed notes due 2027;

• $770 for the $600 million 6½% senior notes due 2025;

• $905 for the $625 million 10½% senior notes due 2026;

• $930 for the $154,948,000 4.6% senior notes due 2021;

• $1,005 for the $16,857,000 4 5/8% senior notes due 2019; and

• $1,010 for the $400 million 9½% senior notes due 2022.

The total amount included an early tender premium of $50 per $1,000 principal amount of notes tendered by the early deadline of 5 p.m. ET on Jan. 15.

As of the early deadline, holders had tendered for $81,631,000 of of the 2036 notes, $14,739,000 of the 2024 notes, $9.06 million of the 2027 notes, $49,882,000 of the 2025 notes, $15,311,000 of the 2026 notes, $11,195,000 of the 2021 notes, $11,407,000 of the 2019 notes and $7,321,000 of the 2022 notes.

All notes that were validly tendered after the early deadline will be returned or credited back to their respective holders, the company said.

As previously reported, holders who tendered after the early deadline would have received the total payment less the early premium.

The maximum purchase price and sub-cap excluded accrued interest to but excluding the settlement date.

Talen intended to fund the purchase of the notes with borrowings under its revolving credit facility.

Tendered notes could have been withdrawn before the early deadline.

Credit Suisse Securities (USA) LLC (212 325-2476 or 800 820-1653) was the dealer manager. Global Bondholder Services Corp. (212 430-3774, 866 794-2200 or contact@gbsc-usa.com) was the tender agent.

Talen Energy is a competitive power generation company based in The Woodlands, Texas.

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