We advised the lead arranger, agent and collateral trustee for Talen’s DIP financing

Davis Polk advised the lead arranger, administrative agent and collateral trustee under the $1.76 billion superpriority debtor-in-possession credit facilities for Talen Energy Supply, LLC and its subsidiaries (“Talen”) and the collateral trustee and administrative agent under Talen’s prepetition revolving credit facility.

In May 2022, Talen and certain of its subsidiaries initiated voluntary chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. In connection with the chapter 11 filing, the agent and lenders under Talen’s prepetition revolving credit facility arranged the $1.76 billion DIP financing. The Bankruptcy Court confirmed Talen’s plan of reorganization on December 15, 2022, and on May 17, 2023, Talen emerged from bankruptcy. Pursuant to the plan, Talen’s debt is being reduced by approximately $2.2 billion.

Talen, which is headquartered in The Woodlands, Texas, employs over 2,000 individuals and operates 18 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 digital currency mining operation, seeking to develop up to 300 megawatts of digital currency 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 included partners Damian S. Schaible and David Schiff and associates Michael Pera, Hailey W. Klabo and Jeremy R. Lee. The finance team included partner Kenneth J. Steinberg and associates Jason Palios and Sam Dilthey. The litigation team included partner Elliot Moskowitz and associate Rahul Krishnan. All members of the Davis Polk team are located in the New York office.