Talen Energy (NYSE: TLN) and private equity investor Riverstone Holdings LLC, which first announced this deal on June 3, applied July 15 with the Federal Energy Regulatory Commission for approval for Riverstone to buy out the public stock float of Talen, giving Riverstone full control of Talen.
The application was from Raven Power Holdings LLC, C/R Energy Jade LLC and Sapphire Power Holdings LLC (collectively called the “RJS Entities”), and Talen Energy on behalf of itself and its public utility subsidiaries.
The transaction has a total enterprise value of approximately $5.2 billion. Talen and its subsidiaries already are affiliated with the RJS Entities and their affiliates through Riverstone Holdings LLC because the RJS Entities currently hold 35% of the outstanding common stock of Talen. That affiliation occurred on June 1, 2015, upon consummation of a transaction approved by the commission.
Said the application: “The Transaction would therefore not result in any new affiliations, but would increase the combined RJS Entities’ ownership of Talen to 100 percent. Given the pre-existing affiliation and indirect control of Talen by the RJS Entities, there is no change in market concentration as a result of the Transaction. At the close of the Transaction, Talen will be privately held and owned 100 percent by the RJS Entities. The Transaction does not involve any change in the facilities owned and operated by Talen.”
They added: “The Applicants request that the Commission grant all regulatory approvals, including the requests for Section 203 authorization and waivers, without an evidentiary hearing, within sixty (60) days of the date of this filing. Issuance of an order, by September 13, 2016, will allow the Applicants sufficient time to complete the steps necessary to close the Transaction as soon as practicable given other regulatory approvals.”
Talen is a competitive energy and power generation company that owns or controls 16,000 MW of capacity in eight states. Talen has major coal, nuclear and natural gas generating assets that are spread across regions such as PJM Interconnection, the New York ISO and the Electric Reliability Council of Texas.