Talen Gets GoldenTree, Silver Point Loan After Debt Breach
- Loan will give power company money to pay rising hedge costs
- Company said to trip net leverage covenant in third quarter
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Talen Energy Corp. received a loan from a group led by GoldenTree Asset Management and a division of Silver Point Capital that will provide it with much-needed liquidity after it breached a term on its existing debt.
The $788 million first-lien facility maturing in September 2024 will repay $238 million of borrowings on its revolving credit facility and provide working capital to help address soaring winter power prices, according to a statement Thursday. Its bonds plunged after the announcement.