Talen Energy Sells Natural Gas, Hydro Power Projects for $1.51 Billion

Talen Energy Sells Natural Gas, Hydro Power Projects for $1.51 Billion

Talen Energy Corp. (NYSE: TLN) has agreed to sell three Pennsylvania power plants with a total generating capacity of 996 MW for $1.51 billion.
 
The company will sell the 704-MW Ironwood combined-cycle natural gas-fired power plant to TransCanada Corp. (NYSE, TSX: TRP) for $654 million. Talen expects to repay $42 million in debt with the plant when the deal closes.
 
A subsidiary of Brookfield Renewable Energy Partners LP will purchase the Holtwood and Lake Wallenpaupack hydroelectric projects, with a combined generating capacity of 292 MW, for $860 million. The deals are part of a requirement to divest certain assets in specific regions of the PJM Interconnection to comply with an order from the Federal Energy Regulatory Commission approving the transactions that formed Talen Energy.
 
All of the transactions are expected to close in first quarter 2016. For the Ironwood deal, Credit Suisse served as financial advisor and Kirkland & Ellis LLP was the transaction counsel. For the hydro deal, RBC Capital Markets was the financial advisor and Simpson Thacher & Bartlett LLP was the transaction counsel.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...