Talen Energy tightens $290 million add-on term loan OID to 99.5

By Sara Rosenberg

New York, Aug. 2 – Talen Energy Supply LLC revised the original issue discount on its fungible $290 million add-on senior secured term loan B due May 2030 to 99.5 from talk in the range of 98.5 to 99, according to a market source.

Pricing on the add-on term loan is SOFR plus 450 basis points with a 0.5% floor, in line with existing term loan B pricing.

The add-on term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Expected term loan ratings are Ba3/BB/BB+.

Citigroup Global Markets Inc. is the left lead arranger on the deal and the agent.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday morning.

Proceeds will be used to repay the company’s existing LMBE MC term loan.

Closing is expected the week of Aug. 7.

Talen Energy is a Houston-based power generation and infrastructure company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.