Talen Energy makes $400 million draw on revolver for MACH purchase

By Angela McDaniels

Tacoma, Wash., Nov. 2 – Talen Energy Corp. indirectly subsidiary Talen Energy Supply, LLC made a $400 million draw on its secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The draw was used to help fund the company’s acquisition of all of the equity interests of MACH Gen, LLC. The acquisition was completed on Monday.

The remainder of the purchase price was funded with cash on hand.

The cash purchase price was $603 million, which represented the $1.18 billion purchase price plus the estimated net working capital of MACH Gen and its subsidiaries on the closing date and minus amounts outstanding under the first-lien credit facility of a MACH Gen subsidiary.

Amounts outstanding under the first-lien credit facility consist of a $475 million secured term loan due July 2022 and roughly $103 million drawn under a $160 million secured revolving credit facility due July 2021.

The credit facility remains outstanding following the completion of the acquisition.

Talen is an Allentown, Pa.-based energy and power generation company. MACH Gen is an Athens, N.Y.-based operator of gas-fired generation plants.

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