We are advising the administrative agent and collateral trustee under the existing RCF

Davis Polk is advising the administrative agent and collateral trustee under the existing revolving credit facility of Talen Energy Supply, LLC in connection with a comprehensive amendment of the RCF and a waiver of certain defaults thereunder, and Talen’s new $848 million first-lien revolving credit facility, provided by a group of lenders led by GoldenTree Asset Management LP and Silver Point Finance, LLC, and including Apollo Capital Management LP, Diameter Capital Partners LP and Owl Creek Asset Management, LP.

The new revolver is being used in part to repay $238 million of outstanding obligations under the existing RCF and reduce commitments thereunder by the same amount, as well as fund $50 million in initial cash collateral to support outstanding letters of credit issued under the existing RCF. The concurrent amendment to the RCF credit agreement provides lenders with certain additional covenant protections and guarantees and will provide certain additional credit support over time as well as and facilitate the pledging of additional collateral for the benefit of all of Talen’s senior secured creditors.

Talen, headquartered in The Woodlands, Texas, employs over 2,000 individuals and operates 19 power generation facilities across the country, which generate power using a variety of fuels, ranging from zero-carbon energy like nuclear to gas, coal and oil. Its facilities are capable of producing approximately 13,000 megawatts of power. Talen is also investing in a zero-carbon bitcoin mining operation, seeking to develop up to 300 megawatt hours of bitcoin mining capacity, powered by its zero-carbon digital infrastructure campus adjacent to its Susquehanna nuclear power generation station in Berwick, Pennsylvania.

The Davis Polk restructuring team includes partner Damian S. Schaible, counsel Erika D. White and associates David Schiff, Nate Sokol, Michael Pera, Timothy H. Oyen and Hailey W. Klabo. The finance team includes partner Kenneth J. Steinberg and associates Jason Palios and Sam Dilthey. The real estate team includes counsel Lawrence R. Plotkin. All members of the Davis Polk team are located in the New York office.

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