Talen Energy buys $421 million 4.6% notes in oversubscribed tender

By Susanna Moon

Chicago, Nov. 14 – Talen Energy Supply, LLC gave the early tender results in the offer for three series of notes as of the early deadline at 5 p.m. ET on Nov. 13.

Holders had tendered $427,704,000 of the company’s $576 million 4.6% senior notes due 2021 as of the early deadline, and the company accepted for purchase $421,053,000 of the notes using a proration factor of about 98.615%, according to a company update.

As announced Oct. 30, the issuer was offering to spend up to $400 million in a tender offer for three series of notes until 11:59 p.m. ET on Nov. 28.

For the 4.6% notes, the total purchase price will be $950.00 per $1,000 principal amount.

The total amount includes an early tender premium of $50.00 per $1,000 principal amount of notes tendered by the early deadline.

The company also received tenders for $135,485,000 of its $400 million 9˝% senior notes due 2022 and $10,788,000 of its 98,057,000 6˝% senior guaranteed notes due 2024. The notes are listed in order of priority acceptance levels.

None of those notes will be accepted for purchase.

The total purchase price per $1,000 principal amount would have been $1,035.00 for the 9˝% notes and $670.00 for the 6˝% notes, which had a sub-cap of $35 million.

Because the offers have been oversubscribed as of the early date, no more notes will be purchased in the offers.

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

Talen’s wholly owned project subsidiary known as LMBE-MC HoldCo II LLC launched a $450 million seven-year senior secured project term loan B facility with proceeds to be used to fund the tender offers, according to a previous announcement.

The tender is contingent on closing of the financing.

Tendered notes may not be withdrawn after the early deadline.

Citigroup Global Markets, Inc. (212 723-6106 or 800 558-3745) is the dealer manager. Global Bondholder Services Corp. (212 430-3774, 866 794-2200 or contact@gbsc-usa.com) is the tender agent.

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

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