Talen Energy Corporation Announces CEO Transition Plan; FERC and NRC Regulatory Approvals
HOUSTON, April 5, 2023 /PRNewswire/ -- Today, Talen Energy Corporation ("Talen" or "the Company") reported that CEO Alejandro "Alex" Hernandez announced his departure effective as of the date that Talen closes the strategic transactions contemplated by its chapter 11 plan of reorganization (the "Plan") and completes its restructuring. The Plan includes the infusion of new equity capital pursuant to a common equity rights offering of up to $1.55 billion (the "Equity Rights Offering"). The Equity Rights Offering is backstopped by various leading financial institutions that hold approximately $1.1 billion of Talen Energy Supply's ("TES") existing unsecured notes and will, in the aggregate, hold the substantial majority of the equity of Talen upon consummation of the Plan. The Plan and Equity Rights Offering investment achieves an approximately $3 billion reduction in TES' debt, provides for full repayment of TES' first lien funded debt, and the consensual equitization of all of TES' existing unsecured notes.
- Mr. Hernandez has served as CEO since 2021, President and Director of the Company since 2019, and previously as CFO from 2016 through 2021.
- "I thank Alex for his leadership in guiding Talen successfully through the recapitalization and restructuring process.
- We welcome Mac McFarland to Talen and look forward to a successful and orderly transition," commented incoming Talen Board Chairman Stephen Schaefer.
- We formed the Cumulus growth business, which is driving the convergence between digital infrastructure assets and carbon free energy.