Unsecured noteholders of TES have entered into a backstop commitment with respect to a common equity legal rights supplying of $1.3 billion, with possibility to upsize the rights supplying to $1.65 billion, as part of the beforehand announced restructuring support agreement (“RSA”). Furthermore, unsecured noteholders of TES holding around 71% of the unsecured notes have signed the RSA, satisfying a different substantial milestone.
HOUSTON, June 3, 2022 /PRNewswire/ — Talen Electrical power Company (“TEC”) now introduced that subsidiary Talen Electrical power Source (“TES” or “the Company”) has accomplished two significant milestones outlined in just its restructuring guidance agreement (“RSA”), which was initially announced on Could 9.
TES and certain customers of an advert hoc group of its unsecured noteholders (the “Backstop Get-togethers”) have effectively finalized a backstop determination letter with regard to a popular fairness rights supplying of $1.3 billion, with the possibility to upsize the rights providing to as significantly as $1.65 billion subject matter to selected adjustments at closing, as outlined in its RSA.
In addition, TES has been given signatures on the RSA from the Firm’s unsecured noteholders holding over 71% of the principal total of the Firm’s unsecured notes (the “Consenting Noteholders”) satisfying the milestone essential less than the RSA to get hold of support for the RSA from noteholders holding at minimum 2/3 of the Firm’s unsecured notes. As portion of the RSA, the Consenting Noteholders have agreed to equitize extra than $1.4 billion of the unsecured notes upon completion of the restructuring procedure. The $1.3 billion fairness backstop, along with personal debt to be lifted and income obtainable on the equilibrium sheet at the completion of the restructuring course of action, will empower TES to remove $3.2 billion of personal debt and maximize value to stakeholders.
“The completion of these two vital milestones signifies a different move forward as we strategically reposition TES for extensive-phrase benefit creation. The Backstop Parties’ motivation will aid aid the two equilibrium sheet repair service and supply fairness capital to travel the prolonged-phrase good results of the Talen-Cumulus platform and our people. These developments will make it possible for us to build a potent money structure suitable for present day elevated commodity marketplace, situation the Business for expansion, and continue to build upon the quite a few operational achievements we have made in current several years,” reported Chief Government Officer Alejandro “Alex” Hernandez.
Main Money Officer John Chesser mentioned, “With major carbon-cost-free nuclear and baseload technology belongings vital to grid resilience, and Cumulus’ expanding financial commitment in electrical power changeover advancement projects, TEC’s transformation will generate substantial opportunities for worth creation. We are grateful to the Backstop Parties—who are expected to be the future equity homeowners of TES—for their partnership, self esteem and assistance as we progress Talen forward.”
On May well 9, in purchase to effectuate the consensual restructuring contemplated by the RSA, TES and specific of its subsidiaries voluntarily submitted for reorganization below Chapter 11 of the U.S. Personal bankruptcy Code in the U.S. Individual bankruptcy Courtroom for the Southern District of Texas. Pursuant to the RSA, the Company plans to verify its system of reorganization roughly 6 months following the commencement of its restructuring.
Further Information
The restructuring instances are pending ahead of the Honorable Marvin Isgur and are jointly administered less than Circumstance No. 22-90054. Talen Power Company, Cumulus Expansion subsidiaries, LMBE-MC Holdco II LLC and its subsidiaries, and Talen Receivables Funding (TRF) are not element of the submitting. For far more information and facts, visit https://www.talenenergy.com/maximizing-worth-for-our-stakeholders/.
Courtroom paperwork and other information are accessible on a web-site hosted by TES’ statements agent, Kroll, at https://instances.ra.kroll.com/talenenergy. TES has also founded a call centre for queries at 844-721-3899 if calling from inside the United States or Canada or 347-292-4080 if calling from outside the house these areas. Creditor inquiries can also be directed to [email protected].
TES has retained Weil Gotshal & Manges LLP as its legal advisor, Evercore as its expense banker and Alvarez & Marsal as its economical advisor for its restructuring. The Consenting Noteholders are represented by Kirkland & Ellis LLP and Rothschild & Co US Inc.
About Talen Power Company
Talen Energy Company, via its subsidiary, TES, is one particular of the largest competitive electric power era and infrastructure providers in North America. TES owns and/or controls close to 13,000 Megawatts of making potential in wholesale U.S. power marketplaces, principally in the Mid-Atlantic, Texas and Montana.
By way of its subsidiary, Cumulus Development, Talen Electrical power Corporation is producing a massive-scale portfolio of renewable vitality, battery storage, and digital infrastructure property across its expansive footprint. For a lot more info, visit https://www.talenenergy.com/esg-concentrated-long run/.
Media Get hold of
Taryne Williams
Director Company Communications
610-601-0327, [email protected]
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