Talen Energy closed on its previously announced $850 million incremental term loan B credit facility and the repurchase of an equivalent value of shares of Talen’s outstanding Talen common stock, par value $0.001 per share from affiliates of Rubric Capital Management.
The company previously announced it would use the proceeds from the financing to repurchase an equivalent value of shares of common stock held by Rubric. Upon the successful upsizing of the financing from $600 million to $850 million, the company determined it would use cash on hand to further increase the value of the Repurchase from $850 million to $1 billion in aggregate purchase price. Shares repurchased using the proceeds from the financing are incremental to the company’s previously announced share repurchase program. The additional shares repurchased with $150 million of cash on hand utilized capacity under the existing share repurchase program, leaving approximately $1.08 billion of remaining capacity available under the program through 2026.
“Demonstrating our commitment to shareholder returns, we have now repurchased more than 20% of our outstanding common stock in the past year and, through these repurchases, have bought back nearly 75% of our market capitalization as of our emergence from bankruptcy in May 2023,” Mac McFarland, president and CEO of Talen Energy, said. “We will continue to deliver value to all our stakeholders, including Rubric, which remains a valued and substantial owner of Talen stock.”
The repurchase was priced at a 4% discount to a 15-day VWAP prior to the closing of the repurchase, resulting in the repurchase of 4,893,507 total shares at a price of $204.35 per share. Following the repurchase, 45,961,910 shares of the company’s common stock remain outstanding.
