Newly-created independent power producer Talen Energy Corp. (NYSE: TLNwi) will replace Windstream Holdings Inc. (NASD: WIN) in the S&P MidCap 400 after the close of trading on June 1.
S&P 500 constituent PPL Corp. (NYSE: PPL) is spinning off Talen Energy in a transaction expected to be completed on or about that date pending final approvals. Some of the Talen power plants are also coming from privately-held Riverstone Holdings. Windstream is ranked at the bottom of the S&P MidCap 400 as measured by total market capitalization.
Talen Energy is primarily engaged in the generation and marketing of electricity. Headquartered in Allentown, Pa., the company will be added to the S&P MidCap 400 GICS (Global Industry Classification Standard) Independent Power Producers & Energy Traders Sub-Industry index.
Additions to and deletions from S&P Dow Jones Indices do not in any way reflect an opinion on the investment merits of the companies involved, said S&P Dow Jones Indices LLC in a May 21 announcement about the Talen addition to the list.
Upon completion of the related transactions, Talen Energy will be one of the largest competitive energy and power generation companies in North America. Its primary business will be the production and sale of electricity, capacity and related products from a fleet of power plants totaling approximately 14,000 MW of capacity. It will own and operate a portfolio of generation assets principally located in the PJM Interconnection and Electric Reliability Council of Texas (ERCOT) regions, which it considers to be two of the most attractive power markets in the United States. Major plants will include the big Montour and Brunner Island coal-fired facilities in Pennsylvania, which are now controlled by PPL.