ALLENTOWN, Pa., Feb. 1, 2016 /PRNewswire/ -- Talen Energy
Corporation (NYSE: TLN) completed on Monday (2/1) the sale of Talen
Ironwood Holdings, LLC, which through its subsidiaries owns and
operates the Ironwood combined-cycle, natural gas-fired power plant
in Lebanon County, Pa., to a
subsidiary of TransCanada Corporation (TSX, NYSE: TRP).
The total purchase price, after estimated adjustments for net
working capital, was $657 million. In
connection with the transaction, Talen Energy repaid approximately
$41 million in debt, plus a customary
pre-payment premium, associated with the plant. Talen Energy
expects to use transaction proceeds to retire pre-payable and
maturing debt, and for other general corporate purposes.
Sale of the 704-megawatt plant supports mitigation measures
required by a December 2014 Federal
Energy Regulatory Commission order that approved the transactions
that formed Talen Energy. Other previously announced mitigation
sales in specified regions of the PJM Interconnection are expected
to close in the first quarter of 2016, subject to the satisfaction
of customary closing conditions.
Credit Suisse served as financial advisor to Talen Energy for
the Ironwood transaction. Kirkland & Ellis LLP served as
transaction counsel.
Talen Energy is one of the largest competitive energy and power
generation companies in North
America. Our diverse generating fleet operates in
well-developed, structured wholesale power markets. To learn more
about us, visit www.talenenergy.com.
Forward-Looking Statements
All statements contained herein other than statements of
historical fact are "forward-looking" statements for purposes of
the U.S. federal and state securities laws. Although Talen
Energy believes that the expectations and assumptions reflected in
these statements are reasonable, there can be no assurance that
these expectations will prove to be correct. Forward-looking
statements are subject to many risks and uncertainties, and actual
results may differ materially from the results discussed in the
statements. The following are among the important factors that
could cause actual results to differ materially from the
forward-looking statements: adverse economic conditions; changes in
commodity prices and related costs; operational, price and credit
risks in the wholesale and retail electricity markets; operating
performance and the length of scheduled and unscheduled outages at
our generating plants; volatility in the availability and/or price
of electric transmission and/or fuel transmission and delivery
services; competition in the power generation market; federal and
state legislation and regulation, including laws and regulations
concerning the environment; the impact of climate change; and
weather conditions affecting customer energy usage and/or the
availability of fuel for our generating plants. Any forward-looking
statements should be considered in light of such important factors
and in conjunction with Talen Energy's filings with the Securities
and Exchange Commission that are available
at www.sec.gov.
Contacts:
Media Relations – George C. Lewis,
610-774-4687
Investor Relations – Andy Ludwig,
610-774-3389
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SOURCE Talen Energy Corporation