By Paul A. Harris
Portland, Ore., May 19 – Talen Energy Supply LLC price an upsized $400 million issue of 7 5/8% eight-year senior secured notes (Ba3/BB-) at par to yield 7.624% in a Tuesday drive-by, according to a syndicate source.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.
The issue size increased from $330 million.
The yield printed 12.6 basis points through the 7¾% to 8% yield talk.
The Allentown, Pa.-based utility network operator plans to use the proceeds to pay off its revolving credit facility, with the remainder to be used for general corporate purposes, which may include additional debt repayment.
| Issuer: | Talen Energy Supply, LLC
|
| Amount: | $400 million, increased from $330 million
|
| Maturity: | June 1, 2028
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7.624%
|
| Spread: | 704.9 bps
|
| Call protection: | Three years
|
| Trade date: | May 19
|
| Settlement date: | May 22
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% to 8%
|
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