"This negotiated deal represents a significant step in the execution of our growth strategy, and provides meaningful improvement in our cash flow profile," said Talen Energy President and Chief Executive Officer Paul Farr. "The transaction adds highly competitive combined cycle gas assets in NYISO and ISO-NE, two mature and liquid wholesale power markets, with the opportunity to create significant value by optimizing a very efficient gas-fired plant in Arizona."
Pending required regulatory approvals, the transaction is expected to close by the end of 2015.
When the transaction closes, Talen Energy's total generating capacity will increase to 17,600 megawatts, before the required sale of about 1,300 megawatts to meet a Federal Energy Regulatory Commission mitigation order related to the transaction that created Talen Energy.
Talen Energy expects to finance the transaction with a combination of debt and cash. The final financing plan will take into consideration market conditions and the amount of existing MACH Gen debt to be assumed, as well as expected proceeds from FERC mitigation sales and other pending divestitures.
Citi served as financial advisor to Talen Energy. Talen Energy has obtained committed debt financing from Citi in an amount sufficient to fund the purchase price. Bracewell & Giuliani LLP was transaction counsel for Talen Energy. Simpson Thacher & Bartlett LLP was finance counsel for Talen Energy.
Generating assets Talen Energy has agreed to acquire
Plant
State
Market
Capacity
Heat Rate
Fuel
Athens
New York
NYISO
1,080 MW
7,100 BTU/mwh
Gas
Millennium
Massachusetts
ISO-NE
360 MW
6,975 BTU/mwh
Gas
Harquahala
Arizona
AZ-NM-SNV
1,092 MW
7,100 BTU/mwh
Gas
Talen Energy management will host a conference call and webcast to discuss this transaction, update 2016 projected EBITDA and provide free cash flow projections for 2016, on July 20 beginning at 8:30 a.m. Eastern time. The phone number to join the conference call is 1-888-317-6003. Participants from outside of the United States should call 1-412-317-6061. The entry number to join the call is 3912683.
The webcast, in audio format with slides of the presentation, will be accessible on the "Investors & Media" section of the company's website. A replay will be available on the website for those who are unable to listen live.
Talen Energy is one of the largest competitive energy and power generation companies in the United States. Our diverse generating fleet operates in well-developed, structured wholesale power markets. To learn more about us, visit www.talenenergy.com.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Posted In: NewsPress Releases
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in