Talen Energy Supply, an indirect wholly owned subsidiary of Talen Energy, successfully priced a $600 million term loan B facility.

Goldman Sachs Bank USA, RBC Capital Markets, Barclays Bank PLC, Credit Suisse Securities (USA), Deutsche Bank Securities, Morgan Stanley Senior Funding and MUFG will act as joint lead arrangers and joint bookrunners for the term loan B facility.

The net proceeds of the facility are expected to be used in connection with the consummation of the previously announced merger of Talen Energy with an affiliate of Riverstone Holdings and for the working capital needs and other general corporate purposes of the company and its subsidiaries and affiliates, including the repayment of indebtedness under the company’s revolving credit facility.

The term loan B facility will be issued at a price equal to 98.5% of its face value, will bear interest at a rate of LIBOR plus 5.00%, with a 1.0% LIBOR floor, and will have a seven-year maturity. The term loan B facility will be secured by the same collateral securing, and will be guaranteed by the same direct and indirect wholly owned subsidiaries of the company that are guarantors of the company’s revolving credit facility.

The closing of the term loan B facility is subject to customary closing conditions and the closing of the merger, which is expected to occur by the end of 2016.

Allentown, PA-based Talen Energy owns or controls 16,000 megawatts of generating capacity in well-developed, structured wholesale power markets, principally in the Northeast, Mid-Atlantic and Southwest regions of the United States.

Riverstone is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately $34 billion of equity capital raised.